Categories Consumer, Earnings

J.C. Penney’s stock tanks after Q1 earnings miss estimates

J.C. Penney Company Inc. (NYSE: JCP) surpassed market estimates on revenue for the first quarter of 2019 but reported a wider-than-expected loss, sending shares tumbling 8.7% in premarket hours on Tuesday.  

Total revenues were $2.55 billion, down 4.3% compared to the year-ago quarter. Net sales fell 5.6% year-over-year to $2.43 billion.

J.C. Penney reports first quarter 2019 earnings results

Comparable sales decreased 5.5%. The exit of the major appliances and in-store furniture categories had a combined negative impact of 20 basis points to comparable sales in the quarter. During the quarter, the company saw strength in its apparel and fine jewelry categories.

Net loss widened to $154 million, or $0.48 per share, compared with $78 million, or $0.25 per share, in the prior-year period. Adjusted net loss was $147 million, or $0.46 per share.

“As our inventory rationalization effort continues, we are testing a number of strategies around optimal inventory levels and assortment choice counts with a goal of delivering an improved experience for our customers and maximizing our return on investment,” said Jill Soltau, Chief Executive Officer of J.C. Penney.

At quarter-end, inventory was $2.48 billion, down 16% versus the year-ago period. Liquidity totaled approx. $1.75 billion while cash and cash equivalents were $171 million.  

The company currently expects free cash flow to be positive for fiscal year 2019.

In a separate release, J.C. Penney announced the appointment of Shawn Gensch as Executive Vice President and Chief Customer Officer, effective June 3, reporting directly to CEO Jill Soltau.

Gensch joins J.C. Penney from Sprouts Farmers Market. He will oversee all aspects of the company’s marketing strategies and initiatives including digital, advertising, creative design and customer research.

Get access to timely and accurate verbatim transcripts that are published within hours of the event.

Most Popular

Key highlights from Adobe (ADBE) Q2 2021 earnings results

Adobe Systems Incorporated (NASDAQ: ADBE) reported second quarter 2021 earnings results today. Total revenue grew 23% year-over-year to $3.84 billion. GAAP net income was $1.11 billion, or $2.32 per share,

Three factors that bode well for Delta Air Lines (DAL) going forward

Shares of Delta Air Lines Inc. (NYSE: DAL) have gained 45% over the past 12 months and 11% since the beginning of this year. After a particularly distressful period, like

KR Earnings: All you need to know about Kroger Q1 2021 earnings results

The Kroger Co. (NYSE: KR) reported first-quarter 2021 earnings results today. Total company sales were $41.3 billion compared to $41.5 billion in the same period last year. Excluding fuel, sales

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top