Penney Reports Another Loss, Weak Sales Growth
August 12 2016 - 8:50AM
Dow Jones News
J.C. Penney Co. on Friday reported another loss in the quarter
amid underwhelming sales growth, as department-store operators
continue to adjust to shifting shopping trends.
Shares, up 27% over the past three months, rose 1.1% to $10.05
in premarket trading, as the company's loss was narrower than
analysts expected. Penney's results came after rivals Macy's Inc.,
Kohl's Corp. and Nordstrom Inc. reported declining sales but saw
their stocks jump because the results still surpassed
expectations.
In all for the quarter, Penney's posted a loss of $56 million,
or 18 cents a share, compared with a loss of $117 million, or 38
cents a share, a year prior. On an adjusted basis, which excludes
restructuring and debt extinguishment costs, the loss was 5 cents a
share.
Revenue rose 1.5% to $2.92 billion.
Analysts polled by Thomson Reuters had expected an adjusted loss
of 15 cents a share on revenue of $2.93 billion.
Sales at existing stores grew 2.2%, and Penney backed its
same-store sales guidance for the year, expecting growth of 3% to
4%.
Gross margin was 37.1%, compared with 37% a year prior.
Penney said its Sephora, Home and Footwear and Handbags were
among its top-performing divisions.
On Thursday, Macy's said it would close 100 stores as shoppers
continue to spend more online and at discount chains. Meanwhile,
Kohl's also cut its profit target for the year, and Nordstrom said
it took increased markdowns to clear excess goods.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
August 12, 2016 08:35 ET (12:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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