Page 25 - aruba today 12aug2017

BUSINESS Saturday 12 auguSt 2017
A25

JC Penney results extend a gloomy week for retailers

By JOSEPH PISANI this many stores at one
AP Business Writer time,” said CEO Marvin El-
NEW YORK (AP) — Sales at lison, during a conference
established J.C. Penney call Friday.
stores faded again dur- Penney, which has about
ing its most recent quarter, 875 stores left, is making
capping a gloomy week a number of moves to try
for U.S. retailers. and reverse its fortunes. The
Penney’s stock sunk below company, which started to
$4 Friday morning, an all- sell appliances again last
time low for the 115-year- year, said it signed a new
old retailer. deal to sell Electrolux and
Another quarter of falling Frigidaire products. Ellison
same-store sales from J.C. said he wasn’t concerned
Penney Co. come a day about Amazon’s plans to
after similar reports from sell Kenmore appliances
Macy’s, Kohl’s and Dil- on its site, a deal Sears
lard’s, as people increas- Holdings Corp. announced
ingly avoid malls and shop last month. He said Penney
online or at discount retail- customers want to “physi-
ers. Nordstrom stood alone, cally touch” appliances
reporting that its same- before making the pricey
store sales rose in the most purchases. On Thursday,
recent quarter, when it Macy’s CEO Jeff Gennette
held its annual anniversary had left open the possibil- Shoppers walk into a J.C. Penney department store in Hialeah, Fla. On Friday, Aug. 11, 2017, J.C.
sale. ity of expanding into appli- Penney Company, Inc. Holding Company reported earnings. (AP Photo/Alan Diaz)
At established Penney ances and other catego-
stores, sales fell 1.3 percent ries to be more of a one- the company hopes more a note Friday that they see ported a loss of $56 million,
during the second quarter. stop shop. young shoppers will visit the “some traction” in Pen- or 18 cents per share.
It was the fourth straight Ellison said back-to-school Sephora makeup shops ney’s turnaround plan, but Losses, adjusted for one-
quarter of declines for Pen- sales were off to a “good inside Penney’s 600 loca- said they “remain cautious time gains and costs, came
ney, and it was worse than start,” echoing similar com- tions, one of the chain’s given a challenged (de- to 9 cents per share, falling
the 1.2 percent drop that ments from executives biggest draws, when a new partment) store environ- short of the 6 cents per share
Wall Street analysts expect- at Macy’s and Kohl’s on beauty line from singer Ri- ment.” Overall, the com- loss that analysts expected,
ed, according to FactSet. Thursday. To get shoppers hanna is launched. “Rihan- pany reported a net loss of according to Zacks Invest-
Penney said its results were to spend more, Penney na has one of the largest $62 million, or 20 cents per ment Research.
hurt by the closing of about added toy sections in more social media followings of share, in the three months Revenue rose 1.5 percent
130 stores during the quar- stores in time for the back- any celebrity,” Ellison said. ending July 29. In the same of $2.96 billion, which beat
ter. to-school season after test- Analysts at Jeffries said in period a year ago, it re- forecasts of $2.87 billion.q
“We’ve never liquidated ing them last year. And
American consumer prices up slight 0.1 percent in July

By MARTIN CRUTSINGER been slowing this year, rais- ruary, but its latest reading when wage growth contin- all is that inflation has re-
AP Economics Writer ing concerns that inflation has slowed to a gain of just ues to lag. mained below the Fed’s
WASHINGTON (AP) — Con- is falling farther from the 1.4 percent. “The Fed may want infla- target rate.” Fed Chair Ja-
sumer prices posted a slight Fed’s 2 percent goal. Joel Naroff, chief econo- tion to pick up but that net Yellen has attributed
gain in July, with higher “Today’s report is just the mist at Naroff Economic would not be good news the inflation slowdown to
costs for medical care and sort of ammunition the Advisors, said that the low to households,” Naroff said. temporary factors such as
clothing offsetting declines Fed doves need to argue inflation is actually a break “The only way spending a price war in the cellular
for hotel stays and consum- against additional rate for consumers at a time power has increased at phone industry that has
er cellphone plans. hikes this year,” said Chris pushed monthly mobile
The Labor Department said Rupkey, chief financial phone charges down. But
Friday that its consumer economist at MUFG in New she has also indicated that
price index edged up 0.1 York, referring to the group if her view is proven wrong,
percent last month after of Fed officials who gen- she is ready to support a
no gain in June and a 0.1 erally argue for a go-slow change in the Fed’s plans
percent fall in May. Core approach to hiking interest for rate hikes. The Fed
inflation, which excludes rates. The Fed has raised its meets again in September.
volatile energy and food benchmark interest rate in Analysts believe it will keep
changes, was also up a March and June, and has rates unchanged and may
slight 0.1 percent in July. signaled it plans a third rate not hike again until De-
Both overall inflation and hike before year’s end. But cember.
core inflation have risen an private economists say For July, the CPI report
identical 1.7 percent over the Fed may stand pat showed that monthly
the past 12 months. That for the rest of 2017 unless wireless phone charges
shows that inflation pres- inflation accelerates in dropped 0.3 percent. They
sures remain well under coming months. The Fed’s A shopper looks at shirts at a Marshalls & Home Goods retail are now down 13.3 percent
control. In fact, a separate preferred inflation gauge store, part of the TJX Companies brand, in Phoenix. On Friday, over the past 12 months,
inflation gauge favored by showed a 12-month price Aug. 11, 2017, the Labor Department reported on U.S. consumer the biggest 12-month de-
the Federal Reserve has gain of 2.2 percent in Feb- prices for July. cline in cell phone charges
(AP Photo/Ross D. Franklin) in 16 years.q