US department store chain JC Penney’s shares closed down 14.7% in early trading after it cut its full-year profit outlook sharply.The retailer said adjusted earnings per share would now be two to eight cents instead of 40 to 65 cents.It also said it expected not to report any sales increase for the year, having previously said 2017 sales would be as much as 1% higher than the year before.The firm has been struggling with declining clothing sales.
Traditional department stores are losing ground to discount retailers and online giant Amazon.JC Penney has been trying to turn around its business by expanding in other categories, such as toys and white goods, while reducing its dependence on clothes.As a result, it has been selling clothing at heavy discounts to clear outdated lines and make way for an overhaul of its range.”We took the necessary steps to accelerate inventory liquidation primarily across all apparel divisions, which increases available funding to invest in new and trending merchandise categories,” said chief executive Marvin Ellison.
Source: BBC News