J.C. Penney has seen its stock get rocked in the wake of a massive third quarter earnings warning. Is the end near for the storied lowbrow department store? Perhaps.
The department store lowered its full-year comp sales, profit and earnings forecast Friday, predicting that its sales will be flat at best or fall by 1%. It cut its adjusted earnings from 40 cents to 60 cents to 2 cents to 8 cents. Penney will also "accelerate the liquidation of inventory" in women's apparel.
Shares are down 25% at $2.74 each. And given its bleak outlook, the decline may not end.
Despite the president's promise of no stimulus until after Nov. 3, there are no signs yet that this is the sort of correlated selling that leads to a deep correction.
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