J.C. Penney CEO Quits to Join Lowe's

By Imani Moise and Suzanne Kapner

Marvin Ellison is quitting his job as chief executive of struggling J.C. Penney Co. to take over leadership of Lowe's Cos., another retailer in need of a revamp.

The retail veteran joined Penney in 2014 and shifted the department-store chain away from apparel toward appliances. Last year, he closed hundreds of stores and slashed jobs. But the company's sales continue to lag behind rivals.

Lowe's, meanwhile, has been searching for a new CEO that can improve results at the home-improvement chain, which faces pressure from an activist investor and has trailed behind sales gains at Home Depot Inc.

"This is the most challenging and competitive retail market that we've seen in over 50 years," Mr. Ellison told analysts last week on a conference call. Before Penney, he previously worked at Home Depot and Target Corp.

On Tuesday, Lowe's said it had hired Mr. Ellison and he would join the company on July 2. Penney shares slid 8% to $2.30 during premarket trading while Lowe's rose 1.8% to $89.

Write to Imani Moise at imani.moise@wsj.com and Suzanne Kapner at Suzanne.Kapner@wsj.com

(END) Dow Jones Newswires

May 22, 2018 09:51 ET (13:51 GMT)

Lowes Companies (NYSE:LOW)
Historical Stock Chart
From Mar 2024 to Apr 2024