J C Penney Company Inc Shares Plunge After Weak Same Store Sales

J C Penney released its third quarter earnings report before opening bell this morning, posting adjusted losses of 21 cents per share, which was in line with consensus, on $2.86 billion in sales. Analysts had been expecting $2.95 billion in revenue. In last year’s third quarter, the company reported $2.9 billion in revenue and adjusted losses of 46 cents per share.

J C Penney’s losses narrow

J C Penney’s net losses were 22 cents per share or $67 million, while in last year’s third quarter, the department store chain posted losses of 38 cents per share. The company’s same store sales declined 0.8%, compared to the consensus estimate of a 2.2% year over year gain. Gross margin declined 10 basis points year over year to 37.2% of sales. EBITDA grew 26% to $172 million, while adjusted EBITDA increased 57% to $174 million.

The company’s top-performing divisions during the third quarter were Sephora, Home, Salon and Fine Jewelry. The best-performing regions were the Pacific and Northwest regions.

Einhorn Tells Investors: Tesla Is Gaming S&P 500 Index Committee

david einhorn, reading, valuewalk, internet, investment research, Greenlight Capital, hedge funds, Greenlight Masters, famous hedge fund owners, big value investors, websites, books, reading financials, investment analysis, shortselling, investment conferences, shorting, short biasThe Federal Reserve has poured unprecedented levels of stimulus into the U.S. economy to deal with the pandemic, and most experts agree that inflation is just around the corner. David Einhorn has positioned his Greenlight Capital to benefit from inflation when it arrives. Q2 2020 hedge fund letters, conferences and more SORRY! This content is Read More


“We are pleased to see strong sales performance in the growth initiatives we discussed at our most recent analyst meeting,” J C Penney Chief Executive Marvin Ellison said in a statement. “The results of these initiatives are reflected in a positive sales comp in the month of October, driven by over 200 basis points of comp benefit from our 500 new appliance showrooms. We view our October sales results – specifically our acceleration in the last two weeks of the month – and the benefit from appliances as examples of what we expect for the balance of the fourth quarter.”

J C Penney cuts comparable store sales guidance

The department store chain now expects its full-year same store sales to grow by 1% to 2% and adjusted earnings to be in the green. Previously, the company expects its comparable store sales to grow by 3% to 4% for the full year. It looks for a gross margin that’s flat with last year and about $1 billion in EBITDA for the full year.

Shares of J C Penney tanked in premarket trading this morning, falling by as much as 9.31% to $7.99.