Why J.C. Penney Company, Inc. Stock Plummeted 28.5% in August

Why J.C. Penney Company, Inc. Stock Plummeted 28.5% in August

Shares of J.C. Penney (NYSE: JCP) fell 28.5% in the month of August, according to data provided by S&P Global Market Intelligence, after the department store chain announced a bigger-than-expected loss for its latest quarter.

To be sure, J.C. Penney stock fell almost 17% on Aug. 11, 2017 alone -- the first trading day after the company announced that net sales had climbed a modest 1.5% year over year to $2.962 billion, which translated to a GAAP net loss of $62 million, or $0.20 per share. On an adjusted (non-GAAP) basis, which adds perspective by excluding things like restructuring expenses, J.C. Penney's net loss was $28 million, or $0.09 per share. But either way, Wall Street was expecting lower revenue of $2.84 billion to result in a significantly narrower adjusted net loss of $0.05 per share.

Image source: J.C. Penney

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Source: Fool.com