JC Penney Shares Below $1 Again: Is NYSE Delisting Imminent?

With JC Penney shares now trading below $1, the retailer may face another possible delisting from the NYSE if can’t turn things around soon. The company’s stock closed at a reported 85 cents on Monday and was trading at just over 78 cents mid-morning on Wednesday.

Last August, JC Penney was warned about a possible delisting from the NYSE as its shares fell as low as 53 cents, Yahoo Finance reported. The company was able to bounce back from the falter and was back in compliance with the NYSE before the 30-day notice expired.

JC Penney, led by CEO Jill Soltau, has made efforts to transform its business, but it may not be enough to save the retailer that has found itself closing stores and gasping for air as it reported lower than expected holiday sales.

Comparable store sales dropped at the retailer by as much as 7.5% during the nine weeks over November and December 2019, with adjusted comparable sales down 5.4%. At the time, JC Penney contributed part of the loss to its exit from the appliance and furniture business in February 2019.

However, throughout 2019, JC Penney has tested a concept store that included new amenities for shoppers, including fitness classes, a lounge area, and a barbershop. The company has also partnered with secondhand clothing retailer ThredUP for women’s apparel and has expanded its popular St. John’s Bay collection with an outdoor line for men.

But the efforts may not be enough as JC Penney reported dismal sales numbers, but reaffirmed its guidance for fiscal 2019. The company said it expects to see comparable sales to be in the range of 7% to 8% with Adjusted EBITDA expected to exceed $475 million.

Shares of JC Penney stock were down 1.66% as of 11:49 a.m. EST on Wednesday.