Business

Thrills, chills for Penney shares

JCPenney investors got a wild ride yesterday afternoon.

The department store’s stock surged briefly by as much as 12 percent after CEO Ron Johnson touted the performance of a slew of new in-store shops for brands like Levi’s and Liz Claiborne.

But Penney shares plunged just as quickly a few minutes later, when the former Apple exec admitted that business overall during the last two weeks has been more sluggish than expected.

After hitting an intraday high of $32.55, the shares gave up nearly all of the gain. The stock closed yesterday at $29.09, up 3 pennies.

On the whole, Johnson admitted he expects Penney’s business will be just as bad in the second half of the year as it was in the first half, when sales plunged more than 20 percent.

Minutes earlier, Johnson had told analysts and investors that the performance of the retailer’s new in-store boutiques has outpaced the rest of the store by 20 percent.

Sales at the women’s shops in particular have been “off the charts,” Johnson said. But he also warned that it is “way too early to draw conclusions” about the new store layout.

It wasn’t the first time Penney shares have spiked on questionable news. In July, the stock climbed nearly 9 percent after fashion editor Nina Garcia, who was hired as a consultant by Penney, praised the chain in a Twitter message.

“Get ready to shop!” Garcia tweeted after reviewing the in-store boutiques. “It’s going to be a game changer!”