Not surprising at all....sales were in the toilet and it was just a matter of time. I took the chances it would be sooner than later and loaded on the initial big drop in early March.I'll admit I didn't think they would make the change until mid-summer or so....got lucky with timing:)
UPDATE: Penney Ousts CEO Johnson, Brings Back Myron Ullman
(Adds quote from Mr. Ullman in paragraph six.)
By Kristin Jones
J.C. Penney Co. (JCP) Chief Executive Ron Johnson has been ousted, after his attempt at engineering a turnaround at the retailer failed to take hold.
The company has named Myron E. Ullman III as its new chief executive. Mr. Ullman was CEO of Penney until late 2011.
Mr. Johnson came under wide criticism as his vision for reviving the department-store chain failed to stem sliding sales. Mr. Johnson oversaw Apple Inc. (AAPL) stores for a decade and was lured to lead the struggling retailer in 2011 with a $53.3 million pay package, mostly comprised of stock.
But Mr. Johnson's strategy of filling Penney with branded boutiques and doing away with clearances and coupons appeared to alienate its core shoppers. The company lost $4.3 billion in sales in 2012, after Mr. Johnson took the helm; declines accelerated throughout the year. In the fourth quarter, including the crucial holiday season, sales dropped 28.4%, contributing to a net loss of $552 million, the worst of the year.
The company held $930 million in cash on Feb. 2, a decline of 38% from a year earlier.
"While J.C. Penney has faced a difficult period, its legacy as a leader in American retailing is an asset that can be built upon and leveraged," Mr. Ullman said Monday in a statement. "To that end, my plan is to immediately engage with the company's customers, team members, vendors and shareholders, to understand their needs, views and insights."
Mr. Ullman also was elected to the board.
The Wall Street Journal reported last month that J.C. Penney's board would consider sacking Mr. Johnson or selling the company if sales declines didn't reverse.
Shares rose 4.4% to $16.57 in after-hours trading.
Write to Kristin Jones at kristin.jones@dowjones.com
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