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| JC Penney shares slump after outlook cut | |
| (about 1 hour later) | |
| US department store chain JC Penney's shares have fallen more than 20% in early trading after it cut its full-year profit outlook sharply. | |
| The retailer said adjusted earnings per share would now be two to eight cents instead of 40 to 65 cents. | |
| It also said it expected not to report any sales increase for the year, having previously said 2017 sales would be as much as 1% higher than the year before. | |
| The firm has been struggling with declining clothing sales. | |
| Traditional department stores are losing ground to discount retailers and online giant Amazon. | Traditional department stores are losing ground to discount retailers and online giant Amazon. |
| JC Penney has been trying to turn around its business by expanding in other categories, such as toys and white goods, while reducing its dependence on clothes. | JC Penney has been trying to turn around its business by expanding in other categories, such as toys and white goods, while reducing its dependence on clothes. |
| As a result, it has been selling clothing at heavy discounts to clear outdated lines and make way for an overhaul of its range. | As a result, it has been selling clothing at heavy discounts to clear outdated lines and make way for an overhaul of its range. |
| "We took the necessary steps to accelerate inventory liquidation primarily across all apparel divisions, which increases available funding to invest in new and trending merchandise categories," said chief executive Marvin Ellison. | "We took the necessary steps to accelerate inventory liquidation primarily across all apparel divisions, which increases available funding to invest in new and trending merchandise categories," said chief executive Marvin Ellison. |