Excluding the net gain on the sales of non-core assets, restructuring and management transition charges, along with non-cash primary pension plan expense, the adjusted net loss was $203 million, the company, based in Plano, Texas, said in a release.
"While the quarter overall was challenging, the performance of JCP's new brands and shops reinforces our conviction to transform J.C. Penney into a specialty department store," Ron Johnson, chief executive officer, said. "Today, JCP is really a tale of two companies. By far the largest part of our store is the old J.C. Penney, which continues to struggle and experience significant challenges ... . However, the new JCP ... is gaining traction with customers ... ."
Deutsche Bank analysts recently said Penney's no-promotion pricing strategy was confusing for customers, noting that the retailer recently advertised 30 percent off clearance items, The Wall Street Journal reported Friday.
Penney is "backtracking on its no-promotion strategy, confusing customers, and we, therefore, remain skeptical of near-term improvement in business trends," Deutsche Bank said.