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J.C. Penney's stock plunges on short-term outlook

The Associated Press

J.C. Penney & Co.'s stock is one of the market's biggest decliners Thursday after the department store chain said that it expects its financial struggles to continue during the second half of the year.

The retailer has tried to revamp its pricing, merchandise and store design, but its efforts have turned loyal shoppers away. This led to disastrous financial results this year and forced the company to change its strategy.

J.C. Penney says it still sees some struggles ahead but expects business to improve in the long run. The Plano, Texas, company unveiled a new store prototype at an investor meeting Wednesday that got rave reviews. But some investors weren't willing to make another long-term bet on the retailer.

Shares plunged nearly 11 percent to $25.99 by midday Thursday.