New executive appointed as J.C. Penney's Chief Financial Officer
J.C. Penney Announces New Chief Financial Officer
J.C. Penney has named Stephanie Plaines as its newest Chief Financial Officer (CFO), effective from Thursday, the company announced. Plaines was previously the CFO at real estate advisory Jones Lang LaSalle and held senior executive roles at Starbucks, Walmart, and Ahold Delhaize.
The CFO position at J.C. Penney was vacated last year when Bill Wafford stepped down from the role. Prior to Wafford's departure, Brian Cashman served as interim CFO.
The department store chain has seen a rotation of CFOs in recent years, with Wafford joining in 2019 as financial troubles mounted for the company. Those concerns included persistent performance issues and a debt load partly attributable to the failed reinvention attempt by former CEO Ron Johnson a decade ago.
Despite initially remaining at J.C. Penney following its bankruptcy, Wafford departed the company for Thrasio earlier this year. His departure came shortly after earning a retention bonus when the company filed for Chapter 11 bankruptcy.
Simon Property Group, one of J.C. Penney's largest landlords, has reported strong performance by the retailer prior to recent economic disruptions. The retail sector continues to face headwinds as consumers move towards online shopping and experiential retail.
As J.C. Penney searches for stability amidst this ever-changing landscape, CEO Marc Rosen praised Plaines' expertise in data-driven financial management and value creation. Plaines seems poised to help the company navigate its transformation agenda.
For the latest fiscal year, J.C. Penney reported a net loss of $177 million, a significant decrease compared to the prior year's net income of $30 million. Its total net sales, excluding credit card revenue, declined by approximately 8% to $6 billion. The company primarily attributed its net loss to inventory write-downs.
J.C. Penney announced the closure of seven locations due to expiring leases and market shifts. However, the company considers these closures isolated and has no immediate plans to significantly reduce its store count, which remains at around 650 locations nationwide. The company is currently part of Catalyst Brands after merging with SPARC Group earlier this year.
- The new CFO at J.C. Penney, Stephanie Plaines, will potentially leverage her experience in data-driven financial management and value creation to help the company navigate through its transformation agenda amidst the changing retail landscape.
- Despite the current economic disruptions, Simon Property Group, one of J.C. Penney's largest landlords, has reported strong performance by the retailer prior to recent turbulence.
- The evolution of technology, particularly AI and online shopping, and the shift towards experiential retail pose ongoing challenges for traditional businesses like J.C. Penney, as consumer behavior continues to evolve.
- J.C. Penney's financial struggles in recent years include persistent performance issues and a debt load partly due to the failed reinvention attempt by former CEO Ron Johnson a decade ago, which have led to a rotation of CFOs at the company.
- The impact of the pandemic, inflation, and other economic factors have further strained the finances of J.C. Penney, as evident in the company's reported net loss of $177 million for the latest fiscal year, a significant decrease compared to the prior year's net income of $30 million, and an 8% decline in total net sales, excluding credit card revenue.
