Consumers sit exterior of a J.C. Penney shop at the Westfield Shopping mall in Culver Town, California.
Martina Albertazzi | Bloomberg | Getty Illustrations or photos
J.C. Penney has withdrawn its earnings outlook due to the uncertainty encompassing COVID-19.
The division keep chain announced Friday early morning that it is not providing an current outlook at this time.
Before in the 7 days, on Wednesday, Penney said it would close all of its retailers across the state right until April 2, at least, to check out to assist halt the distribute of the new coronavirus. It did not clarify regardless of whether or not it would be shelling out employees during this time. A spokesperson declined to comment.
Penney is also postponing its analyst working day, which experienced been established for April 7, right up until long run see.
Penney “believes it is in the very best curiosity of its prospects, stockholders, partners and associates to continue being targeted exclusively on the operations of the enterprise,” it explained in an SEC submitting.
Penney’s announcement comes after Kohl’s on Thursday evening introduced it has withdrawn its earnings outlook for the current quarter and fiscal yr, as it grapples with the hit it will take from the pandemic.
Kohl’s also mentioned that it has absolutely drawn its $1 billion unsecured credit score facility to improve its funds position and “maintain its financial overall flexibility,” in the midst of so considerably uncertainty.
America’s department shop chains be a part of a escalating checklist of vendors taking very similar steps to consider to maintain their firms, as hundreds of merchants across the U.S., such as complete malls, have briefly absent dim.
Nordstrom, Abercrombie & Fitch and L Models are amid the names that have withdrawn their outlooks, unclear what the long run will keep.
Penney shares, which trade beneath $1, were being down more than 2% Friday morning. It has a current market cap of about $150.4 million. Penney’s stock is down more than 55% this 12 months.