NEW YORK (TheStreet) -- Saks (SKS) CEO Stephen Sadove will be joining J.C. Penney's (JCP) board in a move aimed at lifting the struggling retailer whose shares have plummeted 61% this year. Sadove, Saks' CEO since 2006, also serves as chairman of the National Retail Federation.
Sadove will step down as CEO and Chairman of Saks upon the completion of its merger with Hudson's Bay Company expected before the end of the year.
J.C. Penney Chairman Thomas Engibous said in a statement that Sadove's expertise will be an integral component "as we focus on guiding the turnaround at J.C. Penney".
The retailer's September comparable sales figures show prospects are already improving since a month earlier. Comparable store sales gained 580 basis points month-to-month and online sales rose 25.3%.
Sadove will replace sitting board member Geraldine Laybourne who is leaving the company to focus on her role as chairman of startup KANDU.
J.C. Penney shares are up 3.35% in pre-market trading, after closing Tuesday at $7.77.
TheStreet Ratings team rates J.C. Penney Co as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate J.C. Penney Co (JCP) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, generally high debt management risk, disappointing return on equity and poor profit margins."