NEW YORK (AP) - JC Penney has a leader Home Depot appointed as its next CEO.
The department store operator said Monday that Marvin Ellison, currently Executive Vice President of Home Depot Stores Inc., President and CEO to be next August in November.
JC .Penney shares rose in premarket trading on the news.
The 49-year-old Ellison is the position of CEO Mike Ullman, the Plano, Texas, head of the company was taking back in April 2013 after former CEO Ron Johnson after just 17 months of ousted I work.
Ullman, who had served as CEO for seven years before the Johnson worked to stabilize the company after the foiled plan to transform Johnson led the disastrous financial results.
Ellison, who also connect the board of JC Penney Co. has acquired, held as CEO on August 1, 2015 are Ullman Executive Chairman of the Board will serve in this time, in a position for one year.
"The board has to search for the right CEO to lead completed the next phase of growth of JC Penney," said Thomas J. Engibous, Chairman of the Board of Directors of JC Penney in a statement. He called Ellison a "very accomplished retail executive with a history of delivering top line and bottom of the main results of the American retailers."
Engibous said Ellison has a deep understanding of store operations and the ability to successfully execute large retail companies.
Ellison major challenges in turning around JC Penney. While clearly Penney returning to life support, questions remain about whether the new CEO be able to drive sales momentum and the company get back on the path to profitability.
Last week warned Penney investors at its analyst its sales last month were lower than expected and lowered its outlook for key sales for the current quarter measurement.
The warning overshadowed the opening of a strategy the dealer said it would increase sales of 2.55 billion over three years for the company. He would., By improving the productivity department Home Stores, the expansion of e-commerce and key-knacks, jewelry, shoes and handbags areas
Penney sees the possibility for an additional $ 1 billion in sales continue growth in market share. This would increase the annual income of the string to 14.5 billion dollars in 2017, an exercise that is still before revenue generated well below the $ 17.3 billion, decline in Johnson.
Although company officials made the upcoming sales at good game deficit a year ago, also cited a weak sales environment for retailers.
Ullman has attempted to win back customers through the sale of food and basic goods companies fell under President Johnson - stop some new fashion brands such as William Rast, Joe Joseph Abboud by store and back labels.
Penney had to get rid of excess inventory and the increase in sales this year. This helped with three consecutive quarters of revenue growth in the open for at least one year from the holiday quarter last year. But these increases do not offset the drastic cuts in the past year.
It was a long climb to the hole. Penney a loss of nearly $ 1 billion revenue fell 25 percent to $ 12.9 billion for the fiscal year ended February 2, 2013, the first year of transformation failed plan of Johnson. In the last fiscal year ending February 01, the company posted a loss of 1.39 million dollars of sales fell by 8.7 percent to $ 11,860,000,000th
At the launch in New York, Ullman and other executives, the revitalization of areas such as shoes, handbags and jewelry said is critical because customers buy in the departments also going to the fashion departments cross. Penney expanded the area of the boot of his wives and 30 percent of the shoe department separate area for men.
Much of the work was undone, what Johnson has introduced. Penney has its area of origin in order revised to focus on the traditional brand strategy after the former CEO, who also stressed trendy products outside buyer. It has also begun to focus dedicated to the categories at home instead of small shops on a given day.
The Company focused on lowering the cost. Earlier this year, it will eliminate 2,000 jobs, closed 33 stores. Investors should give the company announced more store closures on Wednesday. But Ullman said his store basis was still productive in 1100, including stores in small towns, where Penney does not have much competition.
Penney said it now expects sales open at least a year to increase on a percentage of the low single digits in the third quarter of the growth in the middle of a number, compared to the forecast. The company increased its third quarter and full-year profit forecast.
JC Penney shares rose 46 cents, or 6.5 percent, to $ 7.58 in premarket trading JC Penney shares 80 percent of its value since the beginning of 2012, as investor enthusiasm was high in the lost Johnson's response strategy.
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