JCPenney’s CEO left in Might. Now its second in command is out too.
Penney mentioned Thursday that Jeffrey Davis, the corporate’s chief monetary officer, was resigning 14 months after taking the job. Jerry Murray, a high government, will take over because the interim finance chief.
Davis’ departure marked one other signal of bother at JCPenney (. The corporate’s inventory has slipped 45% this yr, pushed down by Marvin Ellison’s exit to take the highest job at Lowe’s. Penney has not changed Ellison but. )
On Friday, shares fell 9% to round $1.60, a document low.
“They’re in a leaky boat that finally will sink,” Mark Cohen, the director of retail research on the Columbia Enterprise College, instructed CNNMoney final month. “The prognosis for the longer term isn’t happiness.”
Penney is greater than $four billion in debt. The corporate has posted a revenue in solely two quarters over the previous 4 years. In its most up-to-date quarter, Penney misplaced $101 million and was compelled to low cost to clear a glut of clothes piling up in stock.
Penney lacks a transparent imaginative and prescient to carry again buyers, analysts say. Though it closed 141 shops final yr and is closing eight extra this yr, it nonetheless has greater than 860 left.
Penney had switched its focus from older buyers to youthful, trendier ones. Now it’s shifting again towards middle-aged ladies, with manufacturers like Liz Claiborne. Earlier this month, Penney launched Artesia, a brand new ladies’s stylish model for lower than $30.
Months earlier than he left, Davis mentioned Penney’s core prospects had been ladies over 45. The corporate will give an replace on its efforts to win these buyers in early November when it experiences quarterly earnings.
CNNMoney (New York) First revealed September 28, 2018: 10:50 AM ET