Categories AlphaGraphs, Earnings, LATEST, Retail

J.C. Penney stock tanks over disappointing results, guidance cut

J.C. Penney Company Inc. (JCP) missed market estimates on sales and adjusted EPS numbers for the second quarter of 2018. The disappointing results sent the stock tumbling around 25%.

The retailer reported a 7.5% decrease in total net sales to $2.76 billion for the second quarter of 2018 compared to the same period last year. The decline was mainly due to the 141 store closures undertaken in 2017. Comparable sales rose 0.3% but still missed analyst expectations.

The company’s net loss widened to $101 million or $0.32 per share during the quarter from $48 million or $0.15 per share in the prior-year period. The adjusted net loss was $120 million or $0.38 per share.

J.C. Penney revised its guidance for the full year of 2018. The company now expects comparable store sales to be almost flat. Adjusted loss per share is scheduled to be $0.80 to $1.00.

 

JC Penney second quarter 2018 results
JC Penney Q2 2018 Earnings Infographic

 

J.C. Penney’s top-performing divisions included Children’s, Jewelry and Sephora. Looking at performance by region, the retailer saw strength in the Southeast and Northwest areas. J.C. Penney, however, continues to struggle in a harsh retail environment with shifts in customer trends and the rising strength of e-commerce. Inventory increased 0.1% to $2.82 billion from last year.

J.C. Penney’s search for a new CEO is ongoing, and the company has stated that this is a top-priority task. The process is going on well and is expected to be completed soon.

 

Related: Earnings Preview: Is there hope for J.C. Penney?

Related: J.C. Penney Q1 2018 Earnings Infographic

Most Popular

AVGO Earnings: All you need to know about Broadcom Q1 2021 earnings results

Broadcom Limited (NASDAQ: AVGO) reported first quarter 2021 earnings results today. Total revenue increased 14% year-over-year to $6.65 billion. GAAP net income was $1.3 billion, or $3.05 per share, compared

Infographic: Costco (COST) Q2 2021 sales up 15%; earnings miss

Retail giant Costco Wholesale Corporation (NASDAQ: COST) reported higher earnings and revenues for the second quarter of 2021. Earnings missed analysts’ expectations, while sales beat. Net profit was $951 million

Will shifting to as-a-service model help Hewlett Packard in emerging stronger from COVID?

With the corporate world rapidly shifting to cloud-native computing after the virus outbreak changed work culture and the way businesses operate, technology providers are aggressively innovating their offerings. Hewlett Packard

Tags

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