New York -- J.C. Penney Co. shares fell 12% on Tuesday to close at $13.93, and nearly reached their lowest levels since 2001, Reuters reported.
All in all, it was a rough day for Penney as industry analysts debated the surprising decision to replace ousted CEO Ron Johnson with his predecessor, Myron “Mike” Ullman. Also on Tuesday, Dow Jones, citing sources, reported that the department store company’s same-store sales were down more than 10% so far in its first quarter, which still has about a month left.
While Ullman’s return clearly underwhelmed the market, the general consensus of industry analysts was that his appointment was a short-term fix that would give Penney some badly-needed stability — at least for the near future. Ullman has a good reputation in the industry, particularly with vendors, many of whom found Johnson off-putting.
"Ullman makes sense in the interim, given the urgent cash situation. Ullman is also a known partner to the vendors," UBS analyst Michael Binetti wrote in a note on Tuesday.