Shares of retailer JC Penney are tanking Friday morning after the company painted a gloomy outlook for the rest of 2016.
The company posted a loss of -$0.22 per share against analyst expectations of -$0.30 a share. Sales, however, fell far short of expectations, declining -0.4% against analyst expectations of a 3.3% increase.
The bigger news, however, was that the retailer slashed all of its projections for the year. JC Penney cut its outlook for gross margins to an increase of only 0.1% to 0.3% from the original projection of 0.4% to 0.6%.
In response to the news, shares of the company are diving in pre-market trading. As of 7:42 a.m. ET, the stock was down a little over 13% at $6.76 a share.