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J. C. Penney Co., continuing to feel the impact of its reinvention efforts, today reported that it had a net loss of $147 million or $0.67 per share for the second quarter ended July 28.
On an adjusted basis, excluding restructuring and management transition charges, inventory transition markdowns, gains on the redemption of the Simon REIT units, and other costs, Penney’s had a net loss of $81 million, or $0.37 per share.
Comparable store sales for the second quarter declined 21.7 percent. Total sales decreased 22.6 percent, which includes the effects of the company’s exit from its outlet business. Internet sales through jcp.com were $220 million in the second quarter, decreasing 32.6 percent from last year. Sales were adversely impacted by the company’s decision to significantly reduce its marketing activities during the latter half of the quarter, as it reconsidered its approach to pricing and marketing in time for back to school.
“We have now completed the first six months of our transformation and while business continues to be softer than anticipated, we are conﬁdent the transformation of J.C. Penney is on track. The transition from a highly promotional business model to one based on everyday value will take time and we will stay the course,” said chief executive officer Ron Johnson. “This month we simplified our pricing, launched the ﬁrst of our new shops, and accelerated our marketing efforts to focus on brands, products and value. Early response to these efforts has been very encouraging.”
He added, “We continue to learn and adjust, and fully expect that our unique, specialty department store experience will drive jcpenney’s long term success. Our rock solid balance sheet will support the execution of our transformation and position us for growth beginning in 2013.”