NEW YORK ( TheStreet) -- Investors shunned J.C. Penney's (JCP) stock Friday following dismal earnings results and concerns over whether the company can regain the traction it lost even with the return of its former CEO.
Shares were dropping 3.2% to $18.19 at last check on Friday.
The stocks of Wal-Mart Stores (WMT) and Kohl's (KSS), were also slipping a day after both retailers reported first-quarter earnings that fell 0.9% and 0.3%, respectively. Shares of Sears (SHLD) and Target (TGT) were each in the green on Friday.
J.C. Penney said Thursday that it had a first-quarter loss of $348 million, or $1.58 a share. Net loss for the quarter totaled $289 million, or $1.31 a share when adjusted for charges related to the retailer's restructuring and management transition. J.C. Penney said restructuring charges were $72 million.Sales at the Plano, Texas-based retailer dropped by 16.4% to $2.64 billion from year-earlier sales of $3.15 billion. Comparable-store sales declined by approximately 16.6%, fueled by the ongoing transformation of its home department, the company said. J.C. Penney's gross margin dropped from 37.6% of sales to 30.8%, which was "negatively impacted by lower-than-expected sales, a higher level of clearance merchandise sales and a return to some promotional activity towards the end of the quarter," the company said in a statement. Analysts seemed most concerned with the bigger-than-expected "free cash flow burn" the company went through in the quarter. J.C. Penney said last week, when it pre-announced its dismal sales figures for the quarter. that cash and cash equivalents were about $821 million as of May 4. "We remain underweight and see further downside risk to the Street's 2013-2015 outlook," Morgan Stanley analysts Kimberly Greenberger and Heather Balsky wrote in a note Friday, in which they characterized the company's first-quarter "cash burn," as "worse than expected." "
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