Mike Ullman

Penney's reports 3Q sales shortfall, cuts outlook

J.C. Penney cut its sales outlook for the year after reporting a surprise decline in a key sales figure for the third quarter as it wrestled with sluggish clothing sales.

The report is a setback for Penney, whose business has been volatile, bouncing back in the summer after a tough start to the year.

Nonetheless, shares rose in afternoon trading Friday after dropping as much as 10 percent in premarket dealings.

Penney is trying to recover from a catastrophic reinvention plan under former CEO Ron Johnson that sent sales and profits into a free-fall in 2012 and 2013. Business stabilized under Mike Ullman, who took the helm in 2013 after Johnson was pushed out. Under...

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