Like a teen’s pair of jeans, J.C. Penney’s (JCP) stock has been torn to shreds.
The department store lowered its full-year same-store sales, profit and earnings forecast Friday, predicting that its sales will be flat at best or fall by 1%. It cut its adjusted earnings from 40 cents to 60 cents to 2 cents to 8 cents. Penney will also “accelerate the liquidation of inventory” in women’s apparel.
Shares crashed 15% on Friday’s session. The stock has now cratered to the tune of 63% this year, spurred by intense online competition from the likes of Amazon (AMZN) and mixed spending on the part of low income shoppers. Given the stock’s hammering, one can’t help but to wonder if investors think the heavily indebted J.C. Penney won’t be around much longer.