The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

J.C. Penney Posts Steep Sales Decline for Second Quarter

The American retailer reported sales of $1.39 billion in the period ended August 1, down from $2.51 billion a year earlier.

J.C. Penney Store | Source: Shutterstock

Bloomberg

11 September 2020

PLANO, United States — J.C. Penney Co. sales plunged 45 percent in the second quarter as the department-store chain entered bankruptcy and struggled with an accelerated shift away from physical stores and the Covid-19 outbreak.

Net sales fell to $1.39 billion in the period ended August 1 from $2.51 billion a year earlier, the company reported in a regulatory filing Thursday.

The retailer’s lenders have agreed to team up with landlords Simon Property Group Inc. and Brookfield Property Partners to buy the troubled company, which has struggled for years with changing consumer tastes and falling traffic at malls. The outbreak of the pandemic accelerated this trend and prompted its Chapter 11 filing in May.

The company reported $64 million in advisory fees and $50 million in debtor-in-possesion financing fees. Including gains related to the termination of leases, reorganisation costs totalled $108 million in the second quarter.

By Jonathan Roeder.

In This Article

Topics

Retail

Organisations

Location

Plano, United States

US Sues to Block $8.5 Billion Union of Coach, Michael Kors

Antitrust enforcers said Tapestry’s acquisition of Capri would raise prices on handbags and accessories in the affordable luxury sector, harming consumers.

Op-Ed | How Long Can Adidas Surf the ‘Terrace’ Trend?

As a push to maximise sales of its popular Samba model starts to weigh on its desirability, the German sportswear giant is betting on other retro sneaker styles to tap surging demand for the 1980s ‘Terrace’ look. But fashion cycles come and go, cautions Andrea Felsted.

How Rent the Runway Came Back From the Brink

The rental platform saw its stock soar last week after predicting it would hit a key profitability metric this year. A new marketing push and more robust inventory are the key to unlocking elusive growth, CEO Jenn Hyman tells BoF.

For Struggling Public Companies, Going Private Is No Panacea

Nordstrom, Tod’s and L’Occitane are all pushing for privatisation. Ultimately, their fate will not be determined by whether they are under the scrutiny of public investors.