JC Penney (JCP) Swings to Q2 Profit But Cuts FY10 Outlook
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JC Penney Company Inc. (NYSE: JCP) said Friday that it reversed a loss from a year ago on tight inventory controls and exclusive store brands, but the company cut its full-year earnings outlook amid the uncertainty in the economy.
The department store operator reported second-quarter earnings of $14 million or 6 cents per share, compared to a loss of $1 million or break-even per share in the same quarter last year.
Revenue for the Plano, Texas-based company was down 0.1 percent to $3.94 billion in the three month period ended July 31. Same-store sales, or sales at stores open at least one year rose 0.9 percent in the quarter.
On average, analysts had been expecting earnings from JC Penney of 5 cents per share in the quarter on sales of $4.02 billion.
“Our focus on operating excellence allowed us to deliver improved profitability in the first half. Moreover, since the beginning of the year, we have been making changes in our merchandise assortments, introducing new brands and offering better style than ever before, in order to increase top line sales,” said Myron E. (Mike) Ullman, III, chairman and chief executive officer. “This strength was partially offset, however, in the final weeks of the quarter, by the non-comparable and short-term impact of tactical changes we are making in our clearance and catalog selling strategies.”
Looking forward, JC Penney sees third-quarter earnings in the range of 16 cents to 20 cents per share, with comparable store sales up 2 percent to 3 percent, compared to the Street’s view of 24 cents per share.
For the full year, the company lowered its earnings guidance to a range of $1.40 to $1.50 per share from a prior view of about $1.64 per share.
Shares of JC Penney are up 25 cents to $21.05 this morning.
The department store operator reported second-quarter earnings of $14 million or 6 cents per share, compared to a loss of $1 million or break-even per share in the same quarter last year.
Revenue for the Plano, Texas-based company was down 0.1 percent to $3.94 billion in the three month period ended July 31. Same-store sales, or sales at stores open at least one year rose 0.9 percent in the quarter.
On average, analysts had been expecting earnings from JC Penney of 5 cents per share in the quarter on sales of $4.02 billion.
“Our focus on operating excellence allowed us to deliver improved profitability in the first half. Moreover, since the beginning of the year, we have been making changes in our merchandise assortments, introducing new brands and offering better style than ever before, in order to increase top line sales,” said Myron E. (Mike) Ullman, III, chairman and chief executive officer. “This strength was partially offset, however, in the final weeks of the quarter, by the non-comparable and short-term impact of tactical changes we are making in our clearance and catalog selling strategies.”
Looking forward, JC Penney sees third-quarter earnings in the range of 16 cents to 20 cents per share, with comparable store sales up 2 percent to 3 percent, compared to the Street’s view of 24 cents per share.
For the full year, the company lowered its earnings guidance to a range of $1.40 to $1.50 per share from a prior view of about $1.64 per share.
Shares of JC Penney are up 25 cents to $21.05 this morning.
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