Another Retail Icon Is in Turmoil
J.C. Penney Co. Inc. (JCP) - Get Report shares plunged nearly 20% Friday to an all-time low after the department store reported earnings far short of expectations.
For the quarter ending July 29, J.C. Penney reported sales of $2.96 billion, up 1.5% from the year-ago period, with same-store sales down 1.3% year-over-year. Analysts surveyed by FactSet expected sales of $2.84 billion, with a same-store sales decline of 1.2%. However, J.C. Penney's adjusted net loss of 9 cents a share was well above the consensus estimates of 4 cents a share.
J.C. Penney also reaffirmed its 2017 full-year guidance. The Plano-based company expects adjusted earnings of 40 cents to 60 cents a share, with same-store sales growth expected at -1% to 1%.
CEO Marvin Ellison said in a statement that the liquidation of inventory at 127 closing stores hit earnings per share and gross margin, but the company is "confident in our ability to further strengthen our balance sheet, while driving sustainable growth and long-term profitability."
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