JC Penney Company reports net income drop by half

JC Penney Company reports net income drop by half
JC Penney Company reports net income drop by half

J. C. Penney Company, Inc (NYSE: JCP), a mid-range chain of American department stores, announced the drop of its net income to $120 million, or 54 cents a share.

Last year the first-quarter income constituted $238 million, or $1.04. It means that the income decreased by half.

The main reason of low income is the limitation of markdowns on clothing. Sales in the quarter went down by 5.1 percent to $4.13 billion. Sales at stores open at least a year declined 7.4 percent, compared with a year-earlier gain of 3.4 percent.

Earlier analysts predicted that the drop would be higher, 50 cents a share.

To cure its financial state the company plans to cut future orders and make necessary discounts.

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