J.C. Penney (JCP) CEO Ron Johnson, whose company reported a fourth quarter loss Friday, sure talks a good game.

Speaking to the Harvard Business Review last year, the former Apple (APPL) retail guru, who joined the venerable retailer in November 2011, argued that the traditional brick-and-mortar retail industry is its own worst enemy.

"So it's not department stores' size or location or physical capabilities that are their problem," he said. "It's their lack of imagination -- about the products they carry, their store environments, the way they engage customers, how they embrace the digital future. There's nothing wrong with the capability. There's a problem with the execution."

Johnson is putting his money where his mouth is. The Plano, Texas retailer plans to reorganize its stores into a series of 80 to 100 brand shops around a "Town Square." It also introduced a three-tiered "Fair and Square" pricing system with monthly promotions. I have no idea whether this strategy will work, but Wall Street is giving J.C. Penney the benefit of the doubt because of Johnson's track record at Apple. That's not the case with Sears Holdings (SHLD), which has been in the midst of an endless turnaround for years.

Edward Lampert's empire managed to convince Wall Street on Thursday that it isn't running out of cash any time soon. Unfortunately, the most effective cash management strategy in the world isn't going to boost Sears Holding's flagging sales. J.C. Penney is in a similar situation, but Johnson seems to have a better grasp on it than his counterpart at Sears Holdings, Louis J. D'Ambrosio, who was hired by Lampert last year despite his lack of retail experience.

Shares of the 110-year-old retailer have gained more than 18% since the start of the year, but the stock is down Friday morning on the disappointing earnings report. Last month, the retailer warned that the fourth quarter results would be below expectations because of the steep discounts it offered during the holiday season. It wasn't alone, however, as many retailers lowered expectations.

In the three months ended Jan. 28, J.C. Penney lost $87 million, or 41 cents a share, versus net income of $271 million, or $1.13 a share, a year earlier. Revenue fell 4.9% to $5.42 billion, below the $5.5 billion consensus forecast. Excluding one-time restructuring charges, profit was 74 cents, beating the 67 cents expected by Wall Street analysts.

Though J.C. Penney is not out of the woods, Johnson is one of the few people who can breathe new life into a moribund brand.

Jonathan Berr hates shopping as much as going to the dentist. He owns no shares discussed here.