J.C. Penney Slashes Outlook
NEW YORK (
) --
J.C. Penney
(JCP) - Get J. C. Penney Company, Inc. Report
swung to a profit in the second quarter, but its outlook for the remainder of the back-to-school season and 2010 remains tepid.
The department store cut its full-year outlook to $1.40 to $1.50 per share, undercutting from prior guidance of $1.64, citing "uncertain consumer climate." Its third-quarter guidance also fell short of Wall Street's, as management is calling for 16 cents to 20 cents a share. Analysts are looking for 23 cents a share in the third quarter.
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As a result, shares are falling 1.9% to $20.40 in premarket trading.
During the second-quarter, J.C. Penney earned $14 million, or 6 cents per share, compared with a loss of $1 million, or break even, in the year-ago period. Analysts were calling for a profit of 5 cents per share.
Sales remained steady at $3.94 billion, but fell short of Wall Street's forecast of $4.01 billion. Same-store sales rose 1%.
-- Reported by Jeanine Poggi in New York.
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