warned that it does not expect to meet analysts' estimates for the third quarter, citing lower same-store sales and problems at its Eckerd drugstore chain.
The 12-analyst estimate calls for earnings of 10 cents a share, while the company said it sees results ranging from a small profit to a loss as September same-store department sales fell 4%.
J.C. Penney said Eckerd's September same-store sales fell 8.8% and that it expects to post a third-quarter operating loss for the chain. J.C. Penny blamed weakness in the drugstore division as part of the reason for the shortfall, but it also called the overall retail environment "challenging," as well.
On the flipside, retailer
had better news, saying September same-store sales jumped 24.8%. The upscale retailer sees third-quarter earnings of $1 to $1.02 a share, well above the 14-analyst estimate of 85 cents, and the year-ago earnings of 63 cents.
also dropped some disappointing news, saying September same-store sales dipped 8% amid falling margins and an inventory backlog at its Old Navy division. This morning,
Credit Suisse First Boston
cut its EPS outlook for the stock.
Investors can expect the mixed signals to pressure the retail sector today.