Penney's to part with CFO
BY AP Wire Service
Thursday, April 12, 2012
4/12/12 at 5:51 AM
PLANO, Texas (AP) - J.C. Penney Co.'s Chief Financial Officer Michael Dastugue will leave the company Friday in the wake of a broader shakeup of the department store operator's business.
The Plano-based company said Wednesday that Chief Operating Officer Michael Kramer will serve as interim CFO while it looks for a permanent replacement.
Kramer joined J.C. Penney in December, after serving for three years and president and CEO of Kellwood Co. He was also executive vice president and CFO at Abercrombie & Fitch Co. and served as CFO of Apple's retail division.
The announcement comes less than a week after J.C. Penney said it laid off 600 workers, or 13 percent of the staff at its headquarters in Plano as the company looks to streamline its operations. It will also eliminate 300 more jobs at its customer call center in Pittsburgh July 1.
The company's new CEO, former Apple Inc. executive Ron Johnson, is transforming every aspect of Penney's business, from pulling back on constant promotions to rethinking the brands it carries. Johnson became CEO on Nov. 1.
In recent years Penney has suffered because its core middle-income customers have been among those hardest hit by the weak economy. It's also lagged behind rivals like Macy's Inc. making its stores fun places to shop. In its latest fiscal year ended Jan. 28, Penney reported a loss of $152 million on revenue of $17.26 billion. That compares with a profit of $389 million on revenue of $17.76 billion in the same period last year.
Revenue at stores open at least a year, considered a key indicator of a retailer's health, rose a slim 0.2 percent for the latest fiscal year. Rival Macy's Inc. enjoyed a 5.3 percent increase.
J.C. Penney has 1,100 stores. Shares of the retailer gained $1.22, or 3.7 percent, to close Wednesday at $34.43. Over the past year, they have traded between $23.44 and $43.18.
