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Weak profit sends J.C. Penney lower

Published 08/11/2017, 07:40 AM
© Reuters.  Weak profit sends J.C. Penney lower
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  • J.C. Penney (NYSE:JCP) reports a wider loss than anticipated for Q2 as sales weakness persisted.
  • Comparable sales fell off 1.3% during the quaretr to just miss the 1.2% drop anticipated by analysts.
  • Cost of goods sold rose two percentage points to 64.9% of sales as store liquidations factored in. Adjusted EBITDA was $196M for the quarter vs. $233M a year ago.
  • "While broader retail remains challenged, we are encouraged by the improved performance in our total apparel business, including a significant acceleration in kids' apparel," notes CEO Marvin Ellison.
  • Looking ahead, J.C. Penney expects comparable sales for the full year to fall in a range of -1% to +1%. EPS of $0.40 to $0.65 is anticipated vs. $0.49 consensus.
  • Previously: J.C. Penney misses by $0.04, beats on revenue (Aug. 11)
  • JCP -14.23% premarket to follow on a 8.72% decline yesterday.
  • Now read: J.C. Penney Is Well Positioned For Growth


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