JC Penney shares tumble after same-store sales miss estimates
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Struggling department store chain J.C. Penney reported Thursday that its third-quarter sales fell 5.3 percent while net income tumbled 20.8 percent. The news sent shares plunging more than 12 percent in premarket action.
Earnings per share (EPS) were down 52 cents, less than the 57 cents that analysts polled by Refinitiv expected, compared to a 33-cent loss in the year-earlier quarter.
Revenue came in at $2.73 billion, less than the $2.81 billion Wall Street anticipated. In the 2017 third quarter the company had revenue of $2.81 billion.
J.C. Penney shares have tumbled about 61.4 percent during this year.
Comparable-store sales fell 5.4 percent and inventory was reduced by 5.4 percent.
The company withdrew its previous 2018 full-year earnings guidance and updated its previous full-year comparable-store sales guidance. Comparable-store sales for fiscal 2018 are now expected to be down low single digits. The company continues to expect positive free cash flow for the year.
“In spite of our overall sales results, I am encouraged by the recent underlying trends in key businesses such as women’s apparel, active, special sizes and fine jewelry,” CEO Jill Soltau said in a statement.
“We are making progress and taking the necessary steps to right-size our inventory positions to better support the brands and categories that are demonstrating profitable sales growth.”