J C Penney released its latest earnings report before opening bell this morning, posting adjusted losses of 5 cents per share on $2.92 billion in sales. Analysts had been expecting losses of 14 cents per share on $2.92 billion in revenue for the second quarter. In the year-ago quarter, the department store chain posted $2.88 billion in sales and adjusted losses of 40 cents per share.
J C Penney comparable sales in line with estimates
GAAP losses improved to 18 cents per share from 38 cents in last year’s second quarter, while EBITDA improved 59% to $229 million. Adjusted EBITDA increased 69% to $233 million.. Comparable store sales increased 2.2%, which was in line with what Wall Street was expecting. The company said Sephora, Home, and Footwear and Handbags were the best-performing segments. The Ohio Valley and Pacific regions were the best-performing geographical areas for J C Penney.
“We are excited about the initiatives we have in place to drive incremental growth in the back half of the year with our appliance rollouts, new Sephora locations, center core refreshes, in-store .com fulfillment and our chain wide rollout of buy online, pick up in store same day,” J C Penney Chairman and CEO Marvin Ellison said in a statement. “These and other initiatives reinforce our confidence in our ability to achieve $1 billion in EBITDA for 2016.”
J C Penney reaffirms full-year outlook
J C Penney reaffirmed its full-year guidance for a 3% to 4% increase in comparable store sales and $1 billion in EBITDA. The department store chain still expects adjusted earnings per share to be positive this year and an improvement in free cash flow.
Shares of J C Penney surged in premarket trading this morning just before the company released its results, with the stock climbing by more than 5%. The stock quickly reversed course after the earnings results were released, shifting into the red. Shares dipped by as much as 2.41% to $9.70 as investors sold on the news. J C Penney shares were the most actively-traded stock in premarket trading this morning, according to MarketWatch.
