J.C. Penney Posts Flat 2Q Results, Outlook Tepid
JC Penney (NYSE:JCP) disclosed flat second-quarter earnings amid slumping sales and issued tepid third-quarter guidance on Friday, sending the department-store operators stock sinking.
The Plano, Texas-based retailer said it earned $14 million, or 7 cents a share, compared with a profit of $14 million, or 6 cents a share. Excluding one-time items, it earned 13 cents a share, topping estimates for 7 cents.
As was previously reported, total sales slipped 0.8% to $3.91 billion due to shutting down its catalog business. Same-store sales increased 1.5%, while Internet sales gained 2.8%.
"The challenging economy continues to impact the moderate consumer," CEO Myron Ullman, III, said in a statement. "Nevertheless, we have made significant strides in implementing our merchandising growth initiatives, with sales gains across our apparel and accessories businesses both in stores and on jcp.com.
Looking ahead, JC Penney sees third-quarter EPS of 15 cents to 20 cents on a 2% to 3% rise in same-store sales. That compares poorly with the Streets expectation for EPS of 23 cents.
Shares of JC Penney slid 1.79% to $26.35 ahead of Fridays open. They have slumped more than 16% year-to-date.
JC Penneys results and outlook stand in contrast to rival Nordstroms (NYSE:JWN), which beat the Street and upped its guidance late Thursday amid solid sales growth.