JCPenney Stock Plunges After President Departs
Shares of J.C. Penney Company Inc. (JCP) declined sharply on Tuesday after the department store announced that Michael Francis, who had been brought over from Target to help the company redefine its brand, abruptly left the company, according to The Associated Press.
The company released a short statement on Monday but did not indicate why Francis, the company's president, left so suddenly. However, no matter the reason, it is further indication that the company is treading in rough waters. Just last month, J.C. Penney reported a larger loss than expected and a 20 percent drop in revenue as consumers steered away from the stores after it announced a confusing new price scheme.
At a recent industry conference, new company CEO Ron Johnson stated he would continue to support the pricing strategy Francis developed, and that the issue was that the company did not clearly lay it out.
"Our marketing, while it is gaining a lot of mindshare, is not doing the work it [must] to communicate our pricing strategy and to drive our traffic," Johnson told investors last month.
Investors should keep an eye out for any insider trading among J.C. Penney's officials, which could further indicate the company's next direction.
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