J.C. Penney is trying to recover from Ron Johnson and his failed "everyday low prices" strategy. But the retailer hasn't been able to shake one thing: an everyday day low stock price.
Shares of J.C. Penney (JCP) hit a more than 30-year low in October. They've bounced back a bit since then but are still down nearly 60% this year. And that's after an abysmal 2012, when the stock plunged more than 40%.
In February, the company reported terrible sales for the 2012 holiday season. By April, J.C. Penney's board decided it was time to pull the plug on Johnson, who was brought on as CEO only 17 months earlier in part due to his success in creating Apple's retail strategy. Activist Bill Ackman even gave up on the stock. He left the company's board and sold all his shares for a loss.
Johnson's predecessor Mike Ullman returned to the company as CEO and has since been trying to steer J.C. Penney back to its roots of coupons and promotions. But the retailer has continued to struggle. In September, the stock took a big hit on liquidity concerns.
Sales have shown signs of life during the holiday shopping season and Ullman has expressed confidence, but investors are still waiting for J.C. Penney to turn improving sales into a profit. --H.Y.
