J.C. Penney Joins Fellow Department Stores in Retail Malaise

NEW YORK, United States —  Welcome to the club, J.C. Penney Co.

Same-store sales slid 3.5 percent last quarter, the department store company said Friday. Analysts had estimated an 0.7 percent drop, according to Consensus Metrix.

The earnings follow disappointing results from rivals Macy's Inc. and Kohl's Corp., as well as upscale players like Nordstrom Inc. J.C. Penney chief executive officer Marvin Ellison has been trying to set the retailer apart from peers by expanding the company's partnership with Sephora and increasing its assortment of high-price items, like appliances. The retailer is also focusing on services like salons that require shoppers to come into stores.

The shares fell as much as 10 percent to $4.76 in early trading in New York after the results were released. J.C. Penney had dropped 36 percent this year through Thursday.

The company posted revenue of $2.71 billion in the quarter, missing the average $2.77 billion projection of analysts. It did post a surprise profit of 6 cents a share, excluding some items. Analysts had estimated a loss of 21 cents.

By Lindsey Rupp; editors: Nick Turner, Lisa Wolfson and Molly Schuetz.