J.C. Penney Reports Another Loss, Weak Sales Growth--Update
12 Agosto 2016 - 3:14PM
Dow Jones News
By Austen Hufford
J.C. Penney Co. on Friday reported another loss in the quarter
amid underwhelming sales growth, as department-store operators
continue to adjust to shifting shopper trends.
Shares, up 27% over the past three months, rose 1.6% to $10.09
in premarket trading, as the company's adjusted loss was narrower
than analysts expected. Penney's results came after rivals Macy's
Inc., Kohl's Corp. and Nordstrom Inc. reported declining sales but
saw their stocks jump because the results still surpassed
expectations.
Department stores have reported falling profits and lower sales
as shoppers are increasingly turning to discount chains and online
operators such as Amazon.com Inc. for their clothing and apparel
needs. In response, store operators have closed locations and
aggressively reduced expenses.
Penney also has tried to expand into areas that are more
difficult to buy online, such as appliances. The retailer said it
would return to selling appliances in May after a more than 30-year
absence. In the quarter, Penney rolled out appliances to more than
120 locations.
The company also is trying to take advantage of its locations by
promoting same-day, in-store pickup for online buyers. It expanded
that chainwide in the quarter.
Friday, Penney said sales at existing stores grew 2.2%, and the
retailer backed its same-store sales guidance for the year,
expecting growth of 3% to 4%.
In all for the quarter, Penney's posted a loss of $56 million,
or 18 cents a share, compared with a loss of $117 million, or 38
cents a share, a year prior. On an adjusted basis, which excludes
restructuring and debt extinguishment costs, the loss was 5 cents a
share.
Revenue rose 1.5% to $2.92 billion.
Analysts polled by Thomson Reuters had expected an adjusted loss
of 15 cents a share on revenue of $2.93 billion.
Gross margin was 37.1%, compared with 37% a year prior.
Penney said its Sephora, Home, and Footwear and Handbags were
among its top-performing divisions.
On Thursday, Macy's said it would close 100 stores as shoppers
continue to spend more online and at discount chains. Meanwhile,
Kohl's also cut its profit target for the year, and Nordstrom said
it took increased markdowns to clear excess goods.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
August 12, 2016 08:59 ET (12:59 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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