Weak traffic and tough competition hurt J.C. Penney results as it continues to restructure . Bobbi Rebell reports.
A surprising drop in sales at retailer J.C. Penney. Shares of the retailer were lower after the miss, which was well below a more than 2 percent increase forecast by analysts surveyed by Thomson Reuters. The stock had been up on Thursday after rival stores like Macy's and Kohl's gave upbeat holiday forecasts. Penney reported lower revenue, and lowered its guidance for the year. While the retailer's net loss narrowed from a year earlier it was the 11st straight quarter without a profit. Reuters Jharonne Martis: SOUNDBITE: JHARONNE MARTIS, DIRECTOR OF CONSUMER RESEARCH, THOMSON REUTERS (ENGLISH) SAYING: "They had a major restructuring in their store. Consumers are not gravitating too much towards the apparel merchandise like they did in the past. They are more gearing towards the home furnishing sector so as a result we saw that JC Penney did a whole home fresh in their storere s to try to appeal more to the consumer that is trying to beautify their house, make it more appealing. The key problem: shoppers continue to flock to online retailers like Amazon, as well as discount chains like TJ Maxx. Penney's did see some success in its in-store Sephora departments, as well as home and fine jewelry.