J.C. Penney holiday sales drop 0.8 percent, shares slide

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[January 06, 2017]  (Reuters) - J.C. Penney Co Inc <JCP.N> said same-store sales for November and December fell 0.8 percent, the latest department store chain to report a disappointing holiday season performance.

 

The company's shares fell as much as 5.8 percent to $7.40 in premarket trading on Friday.

Rivals Macy's Inc and Kohl's Corp <KSS.N> too posted declines in same-store sales during the crucial holiday selling period on Thursday, highlighting the struggles department store chains face amid competition from online retailers.

"The first three weeks of November proved to be challenging in stores," Chief Executive Officer Marvin Ellison said in a statement.

Comparable sales, however, improved from Thanksgiving week through the end of December, driven by demand for products including appliances, boots and toys, he said.

J.C. Penney maintained its earnings before interest, taxes, depreciation and amortization (EBITDA) target of $1 billion for fiscal 2016 ending January 2017.

(Reporting by Siddharth Cavale in Bengaluru; Editing by Saumyadeb Chakrabarty)

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