This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

J.C. Penney CEO Johnson Ousted, Ullman Returns (Update 1)

Stock quotes in this article: JCP

Updated from 5:06 P.M. EST to reflect changes in stock price in the eighth paragraph.

NEW YORK ( TheStreet) -- J.C. Penney (JCP) shares soared following reports that Ron Johnson is stepping down as the company's CEO, but had given up most of their gains following the announcement of Mike Ullman as the new CEO. The departure was first reported by CNBC.

J.C Penney announced that Myron (Mike) Ullman, III, would be rejoining the company as CEO and will join the Board of Directors. Ullman had been CEO of the company until late 2011.

Activist investor William Ackman, who sits on the retailer's board of directors, who castigated Johnson publicly on Friday at a Thomson Reuters conference in Boston, said criticism of the retailer's CEO amid falling sales and a slumping stock price "is deserved."

J.C. Penney has been struggling in recent months to try to turn itself around, as the retailer faces decreasing revenue and concerns about plans to stay afloat, given mounting debt.

Johnson was made CEO in November 2011, and investors had expected the wunderkind former Apple Inc. store designer could work some of his magic at a retail chain desperately seeking a 21st century makeover. Vendors had been tightening credit while private equity firms had been circling, according to industry sources.

J.C. Penney shares, which had lost 55% in the past 12 months months, closed at $15.87 in regular trading on Monday.

J.C. Penney's numbers have been dismal. For the quarter ended Feb. 2, the company reported a 28% decrease in sales to $3.9 billion while comparable store sales dropped 32% and Internet sales declined 34% compared to the same period a year ago. The company reported net loss of $552 million for the quarter.

Shares had been down as much as 11% following the announcement of Johnson's departure, but later reversed those gains. The stock was recently down 2.96% to $15.40 in after-hours trading according to Nasdaq.com.

-- Written by Chris Ciaccia and Richard Collings in New York

>Contact by Email.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,042.90 -28.32 -0.17%
S&P 500 1,972.29 -5.51 -0.28%
NASDAQ 4,493.39 -12.4620 -0.28%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs