It also withdrew its profit guidance for the year. Its shares tumbled more than 6 percent in premarket trading.
Penney’s results, released Friday, underscore how difficult it is for a company to change the way consumer behave. It also tests the patience of investors and adds more pressure on its new CEO and former Apple Inc. executive Ron Johnson to turn things around at the retailer.
“‘We have now completed the first six months of our transformation, and while business continues to be softer than anticipated, we are confident the transformation is on track,” said Johnson in a statement.” The transition from a highly promotional business model to one based on everyday value will take time and we will stay the course.”
In May, Penney’s stock plunged 20 percent in its biggest decline in four decades after the retailer posted a larger-than expected quarterly loss and a 20 percent drop in revenue in its first quarter because of the poor reception from shoppers.
Things got even worse in the second quarter.
The department store, based in Plano, Texas, says that it lost $147 million, or 67 cents per share, in the quarter ended July 28. That compares with net income of $14 million, or 7 cents per share, in the year-ago period.
Sales tumbled almost 23 percent to $3.02 billion. Revenue at stores opened at least a year fell 21.7 fell, worse than the 18.9 percent drop in the first quarter.
Its adjusted loss excluding unusual items was 37 cents per share. Analysts had expected a 26 cent loss on revenue of $3.2 billion.
Its shares dropped $1.35, or 6.1 percent, to $20.75 in premarket trading.