Penney’s shares tumble after weak profit outlook
New York — J.C. Penney is issuing a weak profit forecast as it accelerated its move to slash prices on goods to clear out inventory.
Shares are tumbling more than 25 percent in premarket trading.
It says it expects a loss of 40 to 45 cents per share in the third quarter. That’s deeper than what analysts expected.
The department store also says that earnings per share for the year will be anywhere from 2 cents to 8 cents. That compares to its original forecast of 40 cents to 65 cents.
The company also trimmed its forecast for a key revenue measure for the year.
The department store is slated to report its third-quarter earnings on Nov. 10.
Like many department stores, Penney has been trying to reinvent itself as shoppers move online.