J.C. Penney, Kohl’s struggle to start year

NEW YORK — The outlook for department stores got murkier Tuesday after J.C. Penney and Kohl’s reported fiscal first quarter results that showed they struggled at the start of the year.

Penney, which has been trying to turn around its business for several years after a disastrous reinvention plan, reported a wider than expected loss and sales declines during the quarter. Kohl’s sales momentum took a pause during the quarter as well, and it cut its fiscal 2020 profit outlook as it struggled with slumping sales. It cited damp weather that cut into sales of spring clothing and a competitive environment in discounted home goods.

The downbeat reports from the mid-priced department stores were in contrast to Macy’s performance, reported last week. Macy’s first-quarter profit smashed Wall Street estimates. Macy’s also put up its sixth consecutive quarter of increases in comparable store sales — or sales in stores open a year — fueled by its robust online business after a three-year sales slump. However, it’s still facing challenges to attract shoppers.

Department stores have been trying to reinvent themselves as more shoppers go online. They’ve also been hurt by increasing competition from the likes of T.J. Maxx and other off-price stores, which offer coveted brands at cheaper prices. T.J. Maxx’s parent, Framingham-based TJX Companies, reported on Tuesday strong results that topped Wall Street estimates, indicating that shoppers continue to be drawn to its treasure hunt experience.