J.C. Penney reports loss and plummeting sales in 1Q

NEW YORK (AP) - J.C. Penney is reporting a bigger-than-expected
loss and plummeting profits in the first quarter as many of its
customers are rejecting a new bold pricing strategy that puts an
end to rampant discounting in favor of everyday low prices.
The department store chain says it lost $163 million, or 75
cents per share in the quarter ended April 28. That compares with a
profit of $64 million, or 28 cents per share in the year-ago
period. Revenue dropped 20 percent to $3.15 billion for the
Analysts had expected a penny loss on revenue of $3.45 billion.
Revenue at stores opened at least a year dropped 18.9 percent.
Separately, the company says it will be discontinuing its
quarterly dividend of 20 cents per share.

(Copyright 2012 by The Associated Press. All Rights Reserved.)

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