(CBS/AP) — J.C. Penney is closing more stores following weak holiday sales season for the retailer. The company has 17 stores in the Chicago area, and it comes as Chicago-based retailer Sears continues to struggle as well. Shares of Sears and J.C. Penney are down more than 60 percent in the past year. In mid February of 2018, the retailer said it would be closing eight stores, including one in downstate Galesburg, Ill. Net income tumbled nearly 70 percent, and a key measure for health dropped 4 percent in the fourth-quarter, the most crucial period of the year for retailers who bank on strong holiday sales. The company’s did top expectations for the fourth quarter results and under new CEO Jill Soltau, the department store rid itself of unprofitable inventory and said it will have positive free cash flow this year. Shares jumped more than 23 percent Thursday. Soltau, who came on board in October, faces numerous challenges in avoiding the fate of Sears or other retailers that have filed for bankruptcy protection, or vanished. Under Soltau, jettisoned major appliances which accounted for 2.7 percent of J.C. Penney’s sales last year, but dragged on the company’s operating profit. It’s focusing instead on women’s clothing, and goods for the home like towels or bedsheets, which carry higher profit margins. Furniture is still available, but only online. That reverses the course followed by predecessor Marvin Ellison, who three years ago began selling major appliances again in an attempt to capitalize on problems at Sears. In a conference call Thursday, Soltau said she has spent time with customers, suppliers and workers and she said she’s convinced that the company can establish a path of “sustainable profit growth.” Changes will be swift, methodical and based on what customers want and expect from J.C. Penney, Soltau said. “This is not business-as-usual,” she said during a conference call Thursday. “Our current reality is clear.” Department stores like J.C. Penney are trying to reinvent themselves in an era when Americans are buying more online, or turning to discounters like T.J. Maxx for clothing. Bringing back shoppers is has proven exceedingly difficult, even for iconic brands. Momentum appears to be slowing at Macy’s, which released fourth-quarter results this week. It reported weaker profit and total sales, as well as meager growth in sales at established stores, a key measure for a retailer’s health. Nordstrom posts earnings late Thursday and Kohl’s reports next week. Among the four stores, only Kohl’s has seen its stock move higher over the past 12 months, but just barely. And the path back to prosperity appears especially tenuous for J.C. Penney. It is trying to claw its way back after a disastrous reinvention plan in 2012 by its former CEO Ron Johnson, who dramatically cut back on promotions and brought in new brands to attract young shoppers. Sales at J.C. Penney went into a freefall, it suffered massive losses and once-loyal customers moved on. That situation has stabilized, but establishing an identity in a retail landscape that undergone seismic changes continues to elude J.C. Penney. “The central problem for (J.C. Penney) is that it no longer gives shoppers reasons to visit stores and to make purchases,” said Neil Saunders, managing director of GlobalData Retail. “In other words, it has lost sight of why it exists. This is evident across both stores and online where a hodgepodge of products are thrown together in a seemingly random fashion.” The company reduced inventory by 13 percent last year and that will continue throughout 2019. Soltau said more uncluttered stores will allow people to find what they want more easily. New executive hires were also announced Thursday, including chief merchant, the person who decides what goes on store shelves. Saunders lauded Soltau’s leadership so far, saying J.C. Penney’s travails predate her. But he said time is limited. J.C. Penney posted net income of $75 million, or 24 cents per share, for the quarter. That compares with $242 million, or 77 cents per share, a year ago. Adjusted per share was 18 cents per share, 7 cents better than analyst had projected, according to a survey by FactSet. Revenue including credit income, fell more than 8 percent, to $3.78 billion, but that was also better than expected. Even though profit and sales fell, investors were elated that it wasn’t worse. Shares jumped 30 percent, but that brought the price to just $1.59 each. Before the economic crisis hit a decade ago, shares cost about $70. The department store said Thursday that it would turn the lights out at 18 department stores, including three that were announced last month. It will also close nine home and furniture stores. It will take charges of $15 million in relation to those closings during the first half of this year. (© Copyright 2019 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)<doc-sep>Struggling retailer JC Penney has announced a round of store closings. The retailer announced today it will close 18 full-line stores and nine ancillary home and furniture stores this year. The 18 stores set for shuttering include three locations announced earlier this year. “The stores identified for closure either require significant capital, are minimally cash flow positive today relative to the company's overall consolidated average or represent a real estate monetization opportunity,” the company said in a statement. “Comparable sales performance for the closing stores was significantly below the remaining store base and these stores operate at a much higher expense rate given the lack of productivity.” Nearly all impacted stores are expected to close in the second quarter of 2019. JC Penney has not announced the locations to be closed. The retailer operates more than 850 stores in the U.S. The announcement comes as the iconic retailer announced weaker-than-expected holiday sales. Fourth quarter income tumbled nearly 70 percent and revenue slid 8 percent. The company’s net income was $75 million, or 24 cents per share, for the quarter compared to $242 million, or 77 cents per share, a year ago, the AP is reporting.<doc-sep>J.C. Penney says it will close 18 department stores and nine home and furniture shops in 2019. That's a far cry from the predictions some analysts were making, which called for more than 100 additional stores to go dark this year. The retailer is still operating more than 800 locations across the country, and that's likely too many, as fewer shoppers head to antiquated malls to shop. And the department store sector as a whole is increasingly under pressure, with the brands found within those stores selling more directly to consumers as additional sales move online to behemoths like Amazon and Walmart. J.C. Penney's management team on Thursday said additional store closures are a possibility in 2020 and beyond. "I think as we go forward — as we mentioned, we're closing 18 [department stores] this year," Treasurer Trent Kruse told analysts. "I think it's safe to assume that as you roll into 2020 and future years, it's likely to see some continuation of that effort. [It's] hard to say now, but I think that's a fair read." The department stores set for closure during the fiscal second quarter of this year are in "tough locations" and are "less productive" when compared against the rest of Penney's fleet, Kruse said. The company is anticipating recording a pretax charge of about $15 million associated with these closures. It declined to provide a list of locations. A spokesperson said the closing stores employ more than 1,000 people, many on a part-time basis. Penney has been in the process of trimming its real estate for years now. It closed 138 stores in 2017. It closed eight stores last year. Department store chains altogether — including Penney, Sears, Macy's, Dillard's and Belk — account for more than 350 million square feet of mall space across the U.S., according to a report late last year from real estate advisory firm Green Street Advisors. Those department stores could fill up 350 average-sized malls — by themselves — Green Street said. Their reach is massive. Penney's footprint — with more than 800 stores — in particular is massive compared with its peers. That's part of the reason why more store closures by the retailer seem inevitable. Nordstrom has less than 150 full-line department stores today. Local chains like Dillard's and Belk have fewer than 300 locations, each. Sears, since emerging from bankruptcy, continues to shrink. Macy's has about 680 department stores, including those labeled as Bloomingdale's. Penney on Thursday said net sales fell 9.5 percent during the fiscal fourth quarter and 7.1 percent in fiscal 2018. Sales have fallen for three consecutive years, now. With its new CEO, Jill Soltau, Penney hopes the steps it's been taking so far — like getting out of the appliance business and investing more in apparel — will turn things around. "I am very pleased with the level of support from our current vendors as well as potential new partners we are meeting with, who are excited to do business with us and are proposing new ideas brands and initiatives to J.C. Penney for consideration," Soltau, who took over as CEO in October, said. "Based on everything I have seen and heard I'm even more convinced that we can establish a path to sustainable profitable growth." Penney shares surged nearly 30 percent Thursday, on the heels of its earnings report. The stock was last trading around $1.60, bringing the company's market cap to about $501 million. Shares have still fallen 70 percent over the past 12 months.<doc-sep>J.C. Penney plans to close 15 additional full-line stores and nine home-and-furniture locations as the retailer struggles to get its footing amid significant challenges for department stores. The chain announced Thursday that it would close the stores because they are not performing well or "represent a real estate monetization opportunity." The company declined to release a list of stores set to close. J.C. Penney had been reviewing its locations for potential closures as it seeks to cut costs amid a downturn in sales. The retailer had 864 department stores as of Nov. 3, according to a public filing. The latest move comes after the company had already announced three full-line store closures in January, bringing the total closures for 2019 to 27. "Comparable sales performance for the closing stores was significantly below the remaining store base and these stores operate at a much higher expense rate given the lack of productivity," J.C. Penney said in a statement. "Associates who will be impacted by the store closures will receive separation benefits, which includes assistance identifying other employment opportunities and outplacement services, such as resume writing and interview preparation." The chain has largely scrapped sales of appliances and furniture to focus on clothing and home goods, which it sees as having more potential and more aligned with its core customers. J.C. Penney has also been more disciplined in clearing its shelves and floors of merchandise that isn't selling to focus on items that have more appeal. "We have incredible products in our stores,'' J.C. Penney's recently appointed CEO, Jill Soltau, who is pursuing a turnaround, said in an earnings call with investors. "It’s also critically important to the customer experience.'' Sales at J.C. Penney stores open at least a year fell 4 percent in the fiscal fourth quarter, which includes the critical holiday shopping season. Department stores are struggling to adjust to digital competition and more innovative physical retailers. J.C. Penney's rival, Sears, barely survived Chapter 11 bankruptcy when it was sold this month to its longtime chairman and largest shareholder. But Sears has closed hundreds of locations in recent years as its sales cratered. Walmart greeters:Many disabled Walmart greeters are being replaced by 'customer hosts,' causing backlash Has 'Fortnite' peaked? As season 8 arrives, research suggests revenue dipped in January Economy has strong quarter:Economy grew 2.6% in Q4 and 2.9% in 2018, matching strongest yearly showing since recession Soltau is under pressure to successfully execute the company's pivot to focus on clothes and beauty products. Investors liked what they saw Thursday. The company's stock jumped 28.2 percent to $1.59 at 12:28 p.m. "The future trajectory of the company will be down to her and success relies upon decisive action with a firm focus on the shopper," Neil Saunders, managing director of GlobalData Retail, wrote Thursday. "Our main concern is that JCP has very little time to course correct. The business needs to move at pace and without any missteps – a tall order in today’s complex and fast-moving retail environment." Contributing: Charisse Jones Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey and Charisse Jones @charissejones<doc-sep>
J.C. Penney on Thursday reported earnings and sales for the holiday quarter that topped analysts' lowered expectations, as the company said it was successful in reducing a glut of unsold inventory in 2018. But revenue was down sharply, and the company declined to provide a forecast for 2019 as it works to improve its financial performance. Part of its turnaround plan entails shutting 18 department stores this year, including three it already announced when it warned of dismal holiday sales last month. It said same-store sales at those 18 stores have been "significantly below" other locations, thus dragging on its overall business and running up expenses. Penney will additionally close nine of its home and furniture locations, as it looks to trim a massive real estate footprint to focus on its more profitable shops. Management also warned additional store closures are a possibility in 2020 and beyond. "I think as we go forward — as we mentioned, we're closing 18 [stores] this year," Treasurer Trent Kruse told analysts. "I think it's safe to assume that as you roll into 2020 and future years, it's likely to see some continuation of that effort. [It's] hard to say now, but I think that's a fair read." The company's shares soared more than 20 percent in early trading on the news. As of Wednesday's market close, the stock had tumbled nearly 70 percent over the past 12 months, to trade around $1.30. J.C. Penney's market cap is roughly $473.1 million. Here's what Penney reported for the fiscal fourth quarter compared with what analysts were expecting, based on Refinitiv data: Earnings per share, adjusted: 18 cents vs. 10 cents expected Revenue: $3.79 billion vs. $3.78 billion expected Same-store sales: down 4 percent vs. a drop of 4.3 percent expected The retailer reported net income for the quarter ended Feb. 2 of $75 million, or 24 cents per share, compared with $242 million, or 77 cents a share, a year ago. Excluding one-time items, Penney earned 18 cents a share, 8 cents ahead of analysts' forecasts based on a survey by Refinitiv. Revenue fell 8.4 percent, to $3.79 billion from $4.14 billion a year ago. That was slightly ahead of expectations for $3.78 billion. Sales at Penney stores open for at least 12 months, on a shifted basis comparing the 13-week period ended Feb. 2 this year to last, were down 4 percent, better than an expected drop of 4.3 percent. Same-store sales were down 3.1 percent for all of last year. Penney since last fall has had a new CEO, Jill Soltau, who's already started shaking things up at the retailer in a bid to turn its business around. The company has struggled with managing its inventory — getting dated apparel off shelves to make way for new styles — and hasn't been able to take advantage of rival Sears' struggles as much as anticipated. Since joining the department store chain, Soltau has already made decisions to shut Penney stores and get out of the appliance business, a category her predecessor, Marvin Ellison, had invested heavily in. Soltau has said Penney, in turn, will make more investments in apparel — devoting even more space in stores to clothes and accessories. The verdict is still out for whether or not this approach will work. Penney has, meanwhile, vowed to get products to market faster to keep up with fast-fashion cycles. "In spite of our past financial performance, we have already taken meaningful steps to drive improvement in key businesses such as women's apparel, active apparel, special sized apparel and fine jewelry," Soltau said Thursday in a statement. Sales of women's apparel were up 2 percent during the fourth quarter. The company said it was able to cut its inventory by 13.1 percent in 2018. In beefing up its leadership since Ellison's departure, Penney announced the hire of Michelle Wlazlo, a former senior vice president of apparel and accessories at Target, as chief merchant. It's also bringing on new heads of planning and allocation and asset protection. It said it's still searching for a head of e-commerce. Meantime, those department stores set to close this year should be shut during the second quarter of 2019, Penney said. The company is anticipating recording a pretax charge of about $15 million associated with the closures. It hasn't yet offered a sales and profit outlook for 2019.