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.
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.