JC Penney slashes profit outlook, sending shares to an all-time low | CNBC

“While we acknowledge the positive work JCP is doing to become less apparel reliant (with initiatives like the expansion of home, appliances, beauty, and salon) the sector faces intense secular headwinds as mall traffic wanes and the shift to e-comm should also continue to weigh on profitability,” Jefferies analyst Randal Konik wrote in a note to clients.

“We continue to see branded retail as more resilient from secular headwinds, as they can better fend off promo pressures and will be destinations for the consumer,” Konik added.

Ellison, at the helm of Penney’s, said the company needed a refresh.

“Although these actions will create a short-term negative impact to cost of goods sold and earnings, long term, we firmly believe it was the right decision for the Company as we transition into the fourth quarter and fiscal 2018,” he explained.

Moving forward, Penney’s Chief Financial Officer Jeffrey Davis will look over the company’s pricing and planning policies, “to streamline … pricing, promotion and markdown strategies.”

Heading into the holidays, and a warmer winter at that, retailers’ ability to perform is being called into question.

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JC Penney slashes profit outlook, sending shares to an all-time low.