J. C. Penney Q3 Loss Widens, Cuts FY18 Comps Outlook; Stock Plunges
J. C. Penney Company Inc. (JCP) reported that its net loss for third quarter widened to $151 million or $0.48 per share, from $125 million or $0.40 per share in the same period last year.
In Thursday’s pre-market trade, JCP is trading at $1.09, down $0.13 or 10.66 percent.
Adjusted net loss was $164 million or $0.52 per share, for the third quarter compared to an adjusted net loss of $108 million or $0.35 per share, for the third quarter last year. Analysts polled by Thomson Reuters expected the company to report a loss of $0.56 per share for the third-quarter. Analysts’ estimates typically exclude special items.
Quarterly total net sales decreased 5.8 % to $2.65 billion from $2.82 billion for the third quarter ended October 28, 2017. Analysts expected revenues of $2.81 billion for the quarter.
Comparable sales decreased 5.4% for the third quarter on an unshifted basis. Reflecting the calendar shift in 2018 due to the 53rd week in 2017, comparable sales decreased 4.5%.
The company said that it believes it is appropriate to withdraw its previous 2018 full year earnings guidance and update its previous full year comparable store sales guidance. Comparable store sales for fiscal 2018 are now expected to be down low-single digits. The company continues to expect to achieve positive free cash flow for the year.
The company said in August that it expected adjusted loss per share to be in the range of $0.80 – $1.00, and Comparable store sales to be about flat For fiscal year 2018.
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