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J.C. Penney Finance Chief Out After 15 Months On The Job, Replaced By Ex-Apple Exec

This article is more than 10 years old.

J.C. Penney's chief financial officer, Michael Dastugue, will step down later this week, the company said this morning.

Chief Operating Officer Michael Kramer will replace Dastugue, who leaves Friday, while the retailer searches for a new finance chief.

Dastugue assumed the role in January 2011. But new CEO Ron Johnson has been building a new leadership team, bringing in people who worked under him when he ran Apple's retail division. For example, Kramer, who was hired last December, served as its chief financial officer.

Ousting Dastugue gives Johnson, who also served for a time as Target's merchandising vice president, the chance to hand pick his new CFO, says Citi analyst Deborah Weiswig. "We expect Ron to leverage his Rolodex of contacts from his days at Apple and Target to find a candidate that will help execute his transformation," she says.

Dastugue's departure comes less than week since J.C. Penney said it would cut 900 jobs to cut costs, including 600 positions at its corporate Plano, Texas headquarters. .

Johnson has announced a broad revamp for the 110-year-old retailer, including a revised and simplified pricing system and a new store design that would center the departments around a central location called The Store. The department-store chain is hoping to turnaround slipping sales, which have fallen nearly $2 billion in five years, while competing with such rivals as Macy's, Sears, TJ Maxx and Target.

J.C. Penney shares rose 4.3% to $34.63 today, following the news. The stock initially jumped as high as 25% after Johnson detailed his plans in late January, but it quickly fell, erasing those gains. In the past year, J.C. Penney is down 10.7%.

Reach Abram Brown abrown@forbes.com. Or follow him at @abebrown716.