J.C. Penney Q3 sales declined 26.1 percent

J.C. Penney for the third quarter of 2012

reported a net loss of 123 million dollars or 0.56 dollars per share. Comparable store sales for the third quarter declined 26.1 percent and total sales decreased 26.6 percent.

Internet sales were 214 million dollars in the third quarter, decreasing 37.3 percent from last year. Gross margin was 32.5 percent of sales, compared to 37.4 percent in the same period last year, and was impacted by lower than expected sales in the quarter and a higher level of clearance merchandise sales. The company's SG&A expenses decreased 155 million dollars compared to last year's third quarter. For the third quarter, the company incurred 34 million dollars in restructuring and management transition charges.

Ron Johnson, chief executive officer of J.C. Penney, said, "While the quarter overall was challenging, the performance of our new brands and shops reinforces our conviction to transform J.C. Penney into a specialty department store. Today, JCP is really a tale of two companies. By far the largest part of our store is the old J.C. Penney, which continues to struggle and experience significant challenges as evidenced by our third quarter results. However, the new JCP, centered around the shop concept, is gaining traction with customers every day and is surpassing our own expectations in terms of sales productivity which continues to give us confidence in our long term business model."

The Texas based company ended the third quarter with approximately 525 million dollars in cash and cash equivalents on its balance sheet. During the quarter, the company opened four new stores and also shops under the Levi's, Izod, Liz Claiborne, The Original Arizona Jean Co. and JCP brands.