JCPenney becomes penny stock after shares dip to 97 cents

JCPenney just became a penny stock.

Shares of the ailing department store chain crashed on Thursday, dipping as low as 92 cents before closing down 7.5 percent, at 97 cents — the first time they’ve ever closed below a dollar since the company went public in the late 1970s.

The Plano, Texas-based retailer is struggling to right itself after turning in weak results for its latest quarter, when revenues declined 5.8 percent, to $2.65 billion, and comparable sales fell 4.5 percent.

Many retail stocks were down on Thursday — a day after they rallied on news of strong holiday spending — but shares of Penney were down far more than rivals like Macy’s, Nordstrom and Kohl’s.

“They are closer to the edge” than other retailers, Gerald Storch of Storch Advisors told The Post.

With a new chief executive, Jill Soltau, on board since October, JCPenney has one year to show the market that it can sell merchandise that people want to buy, added Storch.

Last quarter the company said it was forced to heavily discount merchandise that was not selling. Penney lowered its sales guidance for the year and withdrew its earnings guidance.