J.C. Penney might not be able to turn around its turnaround.
The department store chain’s new initiatives may not be enough to stop its ongoing slide in sales and profits, the company warned in its latest financial filing.
“There is no assurance that our pricing, branding, store layout, marketing, and merchandising strategies, or any future adjustments to our strategies, will improve our operating results,” the company warned in the March 21 10-K, filed with the Securities and Exchange Commission.
The statement added: “It may take longer than expected or planned to recover from our negative sales trends and operating results, and actual results may be materially less than planned.”
The company issued a similar warning last year when it first introduced its “Fair and Square” pricing policy.
In related news, the New York Post is reporting that Penney’s headcount may have been cut by as many as 43,000 workers over the last year. The company has already acknowledged cutting 20,000 jobs.
In positive news, J.C. Penney said that its bondholders had withdrawn a notice of default. The company had challenged the notice in court.
For fiscal year 2012, the company lost nearly $1 billion, and saw sales drop by more than 20 percent.