J.C. Penney (NYSE:JCP) struggling with its restructuring plan after posting dismal second quarter results. The department store chain reported a net loss of 37 cents per share, wider than the street's expected loss of 14 cents. Revenue for the quarter fell 23% from last year to $3.02 billion. Not only did it miss the average estimate of $3.18 billion but it is the lowest quarterly revenue since at least 1989.
Investors are worried Ron Johnson, J.C. Penney's new CEO who joined the company in November, doesn't have a clue what he's doing. But the former Apple retail chief believes in his new model for the company saying in their statement "The transition from a highly promotional business model to one based on everyday value will take time and we will stay the course."
J.C. Penney added it doesn't expect to meet its previously issued forecast for its fiscal 2012 earnings. It didn't provide a new projection but it should be lower than the $2.16 a share it announced back in May.
Despite this bad news investors are buying up the stock this morning. J.C. Penney shares are trading over 10% higher to $24.34.