J.C. Penney stock prices have fallen steadily throughout the past six months. The company warns that even more store closures are ahead, with 18 physical locations planned to shutter during 2019 in addition to nine of its furniture and home locations.
The company has refused to provide a public forecast for 2019. Slow holiday sales and revenue that fell 8.4% during 2018 are just one reason stock market analysts say it’s not safe to purchase J.C. Penney stock.
The company’s new CEO, Jill Soltau, wants to turn the department store around and position it for success. Company treasurer Trent Kruse says they will close more locations in 2020 and beyond in an effort to reduce their footprint and minimize expenses.
Stock prices fell 70% during the past 12 months and now trade around $1.30. During the fourth quarter, same-store sales were down 4%. The company’s struggles include managing inventory, specifically moving outdated items off the shelves to make room for newer styles. Soltau made a key decision to get out of the appliance business and devote more store space to accessories and clothing. Soltau believes the company needs to work on getting their products to market quickly to keep up with the latest trends.
One spot of good news for the store was women’s apparel section, which showed a 2% uptick in sales during the fourth quarter.
