Penney’s posts a 3Q loss

November 15, 2011 • Business

In this Oct. 27, 2011 photo, Calphalon cookware is displayed at J.C. Penney, in New York. J.C. Penney Co. is reporting a loss in the third quarter as the department store operator’s results were weighed down by restructuring costs and management transition charges. (AP Photo/Mark Lennihan)

NEW YORK (AP) — J.C. Penney Co.’s new CEO, former Apple executive Ron Johnson, told analysts Monday that the department store chain is rethinking everything it’s doing — from pricing to products. The message came as the retailer reported a quarterly loss.

Johnson’s comments offer valuable insights into the next chapter for Penney’s, which like many mid-priced retailers, has been hurt because its middle-income consumers have been especially hard hit by the challenges of the weak economy. The Plano, Texas company has added popular brands like European clothing line MNG by Mango and Sephora cosmetics, but still struggles to make its stores more inviting places to shop.

Johnson’s address comes on the day the company reported a third-quarter net loss due to costs related to restructuring, its management transition and a voluntary retirement program. The company also gave a fourth-quarter outlook that was below Wall Street forecasts.

“I am working with our team to rethink, really to reimagine everything we do,” said Johnson, who was with Apple for 11 years before taking the CEO helm from Myron Ullman III. “I am investing considerable energy in a strategic review of our product, our pricing and our promotional strategies in order to create an exceptional, a new, a better Login to read more

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