Penney reports loss, dragged down by charges

NEW YORK - MARCH 03: Customers walk through the new J.C. Penney 15,000-square foot temporary promotional store, or 'pop-up' store, in Times Square March 3, 2006 in New York City. Part of the biggest marketing campaign of the retail stores 104 years in business, the store is an attempt to give the public a new and contemporary look at the chain. The store, which will only be opened for 24 days, features Warholesque style posters and plasma screen TV?s among 22 kiosks where customers can order merchandise, play games or download music.
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NEW YORK - J.C. Penney Co. (JCP) says it lost $87 million in the fourth-quarter, citing restructuring and management transition charges as well as the financial impact related to its new pricing strategy.

The department store chain said Friday that its loss amounted to 41 cents per share for the three-month period ended Jan. 28. That compares with net income of $271 million, or $1.13 per share in the year-ago period.

The results include restructuring and management charges that totaled 56 cents per share. The impact of its pricing strategy, which debuted Feb. 1, lowered results by an additional 59 cents.

J.C. Penney banks on permanent 40% markdowns

Revenue slipped 5 percent to $5.42 billion. Analysts expected $5.5 billion.

Under the stewardship of new CEO Ron Johnson, Penney is scaling back non-stop promotions in favor of every day pricing.

Its shares slipped 4 cents to $41.89 in premarket trading.