Analyst Sees Tough Q2 for JCPenney (JCP), Turnaround Will Be 'Daunting'

JCPenney (NYSE: JCP) shares will open lower Tuesday morning as Credit Suisse's Michael Exstein made some concerning comments and lowered his second-quarter estimate for the retailer.

The analyst believes JCPenney's quarterly sales were negatively impacted by the recent merchandising changes which likely gave consumers the wrong message. Exstein feels a turnaround during the second half of this year would be "daunting."

Exstein expects second-quarter sales to be down more than 20 percent, the decline reported during JCPenney's first quarter. The analyst raised his second-quarter loss estimate from 31 cents per share to 50 cents per share. The current Wall Street consensus estimates are for a loss of 16 cents per share on sales of $3.28 billion.

The retailer is expected to report quarterly figures on Wednesday, August 8th.

Credit Suisse maintains a Neutral rating on shares of JCPenney.

Visit our Analyst Ratings page to track all the market-moving analyst calls on shares of JCPenney.

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