J.C. Penney on Friday reported a fourth-quarter profit and announced a restructuring that cuts 360 jobs to reduce costs and eliminate "bureaucracy."

Key leadership changes also were announced Friday, including the promotion of Joe McFarland to chief customer officer — expanding his role for merchandise beyond his prior store operations responsibilities.

Mike Amend, who has led the modernization of Penney's online business since 2015 and was one of CEO Marvin Ellison's first hires to fix the retailer's neglected online business, is leaving the company.

The Plano-based retailer made progress with debt reduction and posted a $75 million tax-cut gain in the three-month period that ended with January.

But initiatives to increase sales haven't given it the boost it needs. Inventories were reduced and discounting wasn't as severe as a year ago, but shrink — what retailers call theft and other losses of inventory — was higher.

Its stock price dropped as much as 10 percent on Friday before closing at $3.71 a share, a decline of 21 cents, or 5 percent.

Retail holiday results have been generally good as the consumer was in a spending mood and lifted most boats. This week, Penney's competitors Macy's and Kohl's posted stronger fourth quarters.

This year, Ellison said, the company will intensify efforts to gain market share in appliances, mattresses and furniture, while continuing to modernize its apparel and online business. The company forecast that same-store sales in 2018 will be flat to up 2 percent and adjusted profit in the range of 5 cents to 25 cents a share.

Penney doesn't separate out its online sales quarterly performance. But Ellison said in a conference call with analysts Friday morning that online now represents 18 percent of total sales. Jewelry, home and apparel are all strong online, he said, and he thanked Amend for his "hard work" and "laying the groundwork for future innovation and growth."

"Our strategy and plan is clear and consistent, and we remain focused on two critical factors — to operate the business for growth and deliver profitable earnings," Ellison said.

Without naming Sears specifically as he has in the past, Ellison said Penney is poised to gain market share as competitors close stores. Penney's more than 600 appliance departments and 500 mattress showrooms will help win market share, he said.

Penney has identified about 300 malls where other department stores may close, but only about 50 of those properties don't have the capital commitment to redevelop the property left vacant by an anchor's departure, he said. A developer planning to purchase Collin Creek Mall in Plano has said that Penney would be part of a redevelopment.

Fourth-quarter results

Penney reported a fourth-quarter profit of $254 million, or 81 cents a share, compared to a profit of $192 million, or 61 cents a share, a year ago. Adjusted earnings, which is what analysts follow, were 57 cents a share and above the 47 cents a share forecast.

Penney earlier reported that same-store sales were up 3.4 percent during November and December. January results were weaker than that and led to a fourth-quarter comparable sales increase of 2.6 percent. Total sales increased 1.8 percent to $4.03 billion. Analysts had been expecting a 2.1 percent increase.

During the past year, Penney reduced its long-term debt by $600 million to $3.78 billion. The company ended the year with $458 million in cash and liquidity of more than $2.3 billion.

For the year, Penney reported a total sales decline of 0.3 percent to $12.51 billion. Same-store sales, or sales that exclude results from stores opened or closed in the past 12 months, increased 0.1 percent. In 2017, Penney posted a net loss of $116 million, or 37 cents a share, compared with a profit of $1 million the prior year.

Jewelry, home, Sephora, footwear, handbags and salon were the company's top performing departments during the fourth quarter. The Southeast and Gulf Coast were its best performing regions.

Management changes

Other top management changes announced Friday include Jodie Johnson, who has been promoted to head of merchandising for women's beauty and family footwear.

James Starke becomes head of merchandising for men's, children's, home and jewelry.

Ellison credited both of them for leading a turnaround of merchandising strategy that's still ongoing and led to a positive same-store sales increase in women's apparel. They both report to McFarland.

Therace Risch assumes both titles of chief information officer and chief digital officer as she becomes responsible for all online operations. As a result, Penney said, Amend is leaving the company.

In November, John Tighe left the chief merchant post he had held since 2015. He's now president of men's apparel manufacturer Peerless Clothing.

Staff cuts

Penney confirmed Thursday that it restructured staff at its headquarters in Plano and that resulted in layoffs. Friday, Penney said it cut 130 jobs in Plano and an additional 230 in regional and district positions. Those staff cuts will result in annual savings of about $20 million to $25 million.

There are more than 3,000 employees at the Plano office.

The corporate cuts come after Penney said last week that it's closing eight stores and a distribution center in Wisconsin. About 480 people are affected by the store closings and 670 people at the warehouse.

Ellison thanked the company's "nearly 100,000 associates." Penney's 141 store closings last year and additional cuts announced this year take the company's total employment below 100,000 for the first time in decades.

Twitter: @MariaHalkias