The following is an excerpt from CBSNews.com | August 10, 2012 |
(AP) NEW YORK – J.C. Penney Co. (JCP) CEO Ron Johnson hasn’t run out of magic yet, as far as Wall Street is concerned.
The former Apple (AAPL) executive’s soothing words drove the retailer’s stock higher even after the company offered up grisly details Friday of a terrible second quarter.
The midpriced department store chain reported a bigger-than-expected loss and plummeting sales. Shoppers are still not buying into a bold new pricing strategy. Penney even withdrew its full-year profit guidance.
After the report, Moody’s Investors Services downgraded Penney’s rating deeper into junk-bond terrain.
The bleak performance marked the second-straight quarter of severe sales declines since Penney got rid of most steep, temporary discounts in favor of everyday lower prices. The report confirmed it’s going to be a hard sell to shoppers who are used to big sale signs and coupons.
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