Check out the 50 percent drop in quarterly profit at JC Penney.
The mid-tier department store operator had warned in late March that its first-quarter profits would be hammered after a drop in store traffic and dismal Easter sales forced it to cut prices to clear out unsold merchandise.
Penney shoppers can expect more price cuts on future visits to the retailer.
The department store operator said it is now trying to get inventory in its stores to better match the weak sales environment, meaning it will roll out more promotions and cut future merchandise orders.
Based on its forecast, Penney is expecting profits to decline yet again in its second quarter.
It forecast earnings per share of 38 cents–a dramatic drop from the 78 cents per share of earnings from continuing operations it reported a year ago.
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Blockbuster swings to profit in first quarter
(Photo: Reuters)
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