Ron Johnson on receiving end after Q4 earnings report – JCP & AAPL
Northern, WI 03/01/2013 (gdpwatch) – Ron Johnson, the CEO of J.C. Penney Company, Inc. (NYSE:JCP), is going through a tough phase in his professional life. The former retail head of Apple Inc. (NASDAQ:AAPL) is under scrutiny from various quarters after the poor fourth quarter earnings report of J.C. Penney Company, Inc. (NYSE:JCP).
The company has registered lowest sales in more than two decades and Johnson’s alleged incompetent sales and low-price strategies are being conceived as the reason behind this unprecedented slump. JC Penney’s fourth quarter loss is standing at $552 million from $87 million last year, which is far shoddier than what analysts had estimated. The company has just managed to generate revenue of $13 billion, which is the lowest revenue figure recorded since 1987.
Meanwhile, amid severe criticism from industry experts and greater scrutiny from brands associated with J.C. Penney Company, Inc. (NYSE:JCP), CEO Ron Johnson has accepted that he ‘made some big mistakes.’
Johnson had a great track record at Apple Inc. (NASDAQ:AAPL) as a retail chief. He joined this company in November 2011 and reintroduced some old strategies like sending coupons to customers and promoting holiday and Valentine’s Day vouchers. But the gravest error he made when he introduced ‘Every Day’ low price strategy in place of coupons and sales. Ultimately, these decisions in totality have had a detrimental impact on the financial health of the company.
Now, Johnson is yearning hard to earn his reputation back and involve himself in making a winning strategy that can help turn company’s fortune. He is now giving thrust on digitizing the entire system. By adopting this formula, he wants to ensure that technologies are being used in stores to fullest to serve customers.
The shares of J.C. Penney Company, Inc. (NYSE:JCP) were down by 16.97% to close at $17.57
The shares of Apple Inc. (NASDAQ:AAPL) were down by 0.71% to close at $441.40