UPDATE: J.C. Penney (JCP) Posts Q2 Loss of 56c/Share; Comps Rose 6%
J.C. Penney Co., Inc. (NYSE: JCP) reported Q2 EPS of ($0.56), $0.38 better than the analyst estimate of ($0.94). Revenue for the quarter came in at $2.8 billion versus the consensus estimate of $2.78 billion.
Comps rose 6%.
Myron E. (Mike) Ullman, III, Chief Executive Officer, said, "Our turnaround initiatives continue to produce improved financial results. In the second quarter, we gained additional market share while significantly increasing gross margin in a highly competitive promotional environment."
Ullman continued, "Our customers know they can count on JCPenney to deliver relevant stylish merchandise at a price that fits their budget. With our unique assortment of powerful private brands, key national brands and exclusive attractions - all at prices customers can afford - we expect to continue driving profitable sales this back to school season. As we approach the completion of our turnaround, we are focused on reestablishing JCPenney as the premier shopping destination for the moderate consumer."
Outlook
The Company's guidance for the third quarter of 2014 is as follows:
- Comparable store sales: expected to increase mid-single digits;
- Gross margin: expected to be in-line with second quarter of 2014; and
- SG&A expenses: expected to be slightly above last year's levels;
The Company's updated 2014 full-year guidance is as follows:
- Comparable store sales: expected to increase mid-single digits;
- Gross margin: expected to improve significantly versus 2013;
- Free cash flow: expected to be positive;
- Liquidity: expected to be approximately $2.1 billion at year-end;
- Capital expenditures: expected to be approximately $250 million; and
- Depreciation and amortization: expected to be approximately $640 million.
For earnings history and earnings-related data on J.C. Penney Co., Inc. (JCP) click here.