J.C. Penney's CEO Has a Plan — and Investor Patience, for Now
- Stock jumps the most in decades as new leader shakes up chain
- Still, same-store sales miss shows that quick action is needed
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J.C. Penney Co.’s stock jumped the most in decades Thursday after the release of fourth-quarter results -- a clear sign of support for the new chief executive officer. But without sales growth, that faith may not last long.
Jill Soltau, who took the reins last October, is closing underperforming stores, eliminating low-margin items and hiring new executives to improve merchandise selection. The department-store chain also expects to generate positive cash flow this year -- an important development for a company that lists $3.7 billion of long-term debt on its balance sheet.