J.C. Penney reported another horrific quarter of deteriorating sales and wide net losses.
The troubled department store chain is currently struggling to stop the exodus of its customers.
“Comparable store sales declined 11.9% in the quarter, and were negatively impacted by the Company’s failed prior merchandising and promotional strategies, which resulted in unusually high markdowns and clearance levels in the second quarter,” said management in its earnings announcement this morning.
They’re referring to the “failed prior” work of former CEO Ron Johnson.
Back in 2011, hedge fund manager and JC Penney investor Bill Ackman recruited Johnson, who at the time was responsible for the wildly successful Apple Stores.
However, as Johnson rolled out his vision for JC Penney’s stores, sales completely collapsed.
Eventually, Johnson was ousted and Ackman resigned from the board.
“In first paragraph, JC Penney takes shot at Ron Johnson…who is definitely reading the release,” tweeted retail guru Brian Sozzi.
For what it’s worth, the stock is up by around 2% this morning.