JCPenney Shares Are Plunging

JCPenney store redesign

Jim Edwards / BI

JCPenney shares are plunging -- they have fallen more than 8% today.

JCPenney is still recovering from the missteps of former CEO Ron Johnson, and the company announced earlier this month that it would close 33 underperforming stores.

The company's margins have been hurt by aggressively marking down merchandise, Brian Sozzi, chief equities strategist at Belus Capital, said in a recent email to clients.
The clearance strategy is an attempt to win back the customers JCPenney lost during Johnson's tenure.

The New York Post recently reported that the retailer was hiking prices in order to make discounts appear bigger.

We'll update when we know more about what's causing the current decline in price.