J.C. Penney Falls as Monthly Sales Gain Disappoints Some
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J.C. Penney Co. met its forecast of increasing sales last month, yet the 10 percent gain still disappointed some investors and the shares fell.
“I was expecting double digits, and that’s as low in double digits as you can get,” Rick Snyder, an analyst at Maxim Group LLC in New York, said today in an interview. The company is using heavy discounting to drive sales, and “the big unknown” is how much that will hurt profit margins, said Snyder, who recommends holding J.C. Penney shares.