J.C. Penney Reports Another Loss, Underwhelming Sales

By Austen Hufford 

J.C. Penney Co. on Friday reported another loss in the quarter amid underwhelming sales growth.

Shares, up 27% over the past three months, rose 1.1% to $10.05 in premarket trading, as the company's 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.

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.

Sales at existing stores grew 2.2%, and Penney backed its same-store sales guidance for the year, expecting growth of 3% to 4%.

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 [e-mail]

(END) Dow Jones Newswires

August 12, 2016 08:13 ET (12:13 GMT)

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