Categories AlphaGraphs, Earnings, Retail

J.C. Penney stock dips after weak Q3 results

J.C. Penney Company Inc. (JCP) reported a wider loss in the third quarter due to lower sales and a 5.4% decline in comparable sales. The bottom line came in narrower than analysts’ expectations while the top line missed consensus estimates. The retailer has withdrawn its previous full-year earnings guidance. Following this, the stock dipped over 9% in the premarket session.

Net loss widened to $151 million or $0.48 per share from $125 million or $0.40 per share in the previous year quarter. Adjusted loss per share decreased to $0.52 from $0.35 a year ago.

Net sales fell 5.8% to $2.65 billion. Comparable sales decreased 5.4% on an unshifted basis. Reflecting the calendar shift in 2018 due to the 53rd week in 2017, comparable sales declined 4.5%.

JCPenney third quarter 2018 Earnings Infographic
J.C. Penney Q3 2018 Earnings Infographics

Credit income, which was previously reflected as a reduction to SG&A, was $80 million for the third quarter, up from $69 million in the prior quarter year. SG&A expenses fell 4% to $883 million on lower corporate overhead and incentive compensation.

Despite the weak top-line results, Jewelry, Women’s Apparel and Men’s were the company’s top performing divisions during the quarter.

Cost of goods sold, which excludes depreciation and amortization, was 68.1% of sales, up from 66% of sales a year ago. The increase as a rate of sales was primarily driven by planned markdown and pricing actions taken in the quarter to clear slow-moving and excess inventory.

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

J.C. Penney said it is appropriate to withdraw its previous 2018 full-year earnings guidance given its recently announced both a new CEO and an interim CFO and to allow the ability to effectively assess and address current and go-forward execution of the business.

Comparable store sales for fiscal 2018 are now expected to be down low-single digits compared to the previous estimate of about flat. The company continues to expect to achieve positive free cash flow for the year.

Shares of J.C. Penney ended Wednesday’s regular session down 4.69% at $1.22 on the NYSE. The stock has fallen over 59% in the year so far and over 57% in the past year.

 

Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference and much more!

Most Popular

MCD Earnings: McDonald’s comp sales up 12.6% in Q4; profit increases

Fast-food chain McDonald’s Corporation (NYSE: MCD) on Tuesday reported an increase in adjusted earnings for the fourth quarter of 2022 when its revenues remained broadly unchanged. The company said fourth-quarter

GM Earnings: All you need to know about General Motors Q4 2022 earnings results

General Motors Co. (NYSE: GM) reported fourth quarter 2022 earnings results today. Revenue increased 28.4% year-over-year to $43.1 billion. Net income attributable to stockholders increased 14.8% to $2 billion while EPS rose 19.8%

CAT Earnings: Highlights of Caterpillar’s Q4 2022 results

Construction-equipment manufacturer Caterpillar Inc. (NYSE: CAT) reported double-digit growth in fourth-quarter revenues and adjusted earnings. Adjusted net profit increased to $3.86 per share in the December quarter from $2.69 per

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