The retailer is being replaced by Allegion, a provider of security for homes and businesses, according to a statement released Friday by S&P Dow Jones Indices, which runs the S&P 500 index.
The retailer's downward spiral began during an ill-fated transformation under former CEO Ron Johnson, who was fired in April after 17 months on the job.
The company's stock has rebounded during the last month. There are signs that the retailer's business is stabilizing under Chief Executive Mike Ullman. However, the change isn't enough to keep J.C. Penney in the index.
J.C. Penney's stock has fallen $10.84, or 55%, to $8.87 this year.
The stock has advanced 18% so far in November after falling to $6.42 on Oct. 21.
Johnson's plan included getting rid of coupons and most sales in favor of everyday low prices, bringing in hip brands and remaking outdated stores. But the changes that were meant to attract younger, wealthier shoppers, wound up turning off its loyal middle-income, middle-age customers who favor sales and basic merchandise like loose-fitting khakis
J.C. Penney will join the S&P MidCap 400. The change will become effective after the stock market closes on Nov. 29.
Earlier Friday, J.C. Penney reported a wider third-quarter loss, but the results showed its business is starting to stabilize.
The department store chain, based in Plano, Texas, says Wednesday that it lost $489 million, or $1.94 per share, in the three months that ended Nov. 2. That compares with a loss of $123 million, or 56 cents per share, a year earlier.
Revenue fell 5.1% to $2.78 billion.
The company's adjusted loss was $1.81 per share. Analysts expected a loss of $1.74 per share on revenue of $2.79 billion.
Revenue at stores open at least a year fell 4.8% for the quarter, but the period ended with its first monthly ! gain since December 2011.
No comments:
Post a Comment