J.C. Penney (NYSE: JCP) reported Q1 EPS of ($0.32), $0.06 better than the analyst estimate of ($0.38). Revenue for the quarter came in at $2.81 billion versus the consensus estimate of $2.92 billion.

Comparable sales were (0.4) % for the first quarter.

Marvin R. Ellison, chief executive officer, said, "The first quarter was clearly challenging from a sales perspective. Although our business was not immune to the issues facing other retailers, I am pleased that we were able to deliver our second consecutive quarter of positive operating profit. In addition, the teams did an excellent job of proactively managing the business throughout the quarter to ensure we remained a fiscally disciplined organization. As a result, we exceeded our profitability expectations, achieving a 63 % increase in EBITDA to $176 million for the quarter."

Ellison continued, "While our first quarter sales were below our expectations, we are maintaining our annual comp guidance of 3 % to 4 % as a result of the positive nature of our recent sales trends, the strength of our Sephora business and our decision to accelerate our appliance rollout. However, we are lowering our full year gross margin guidance to a 10 to 30 basis points increase for the year, reflecting the rollout of appliances and the rapid growth of our online business. Having said that, we remain confident that our turnaround remains on track, and we are excited about our 2016 sales drivers including new Sephora locations, Center Core enhancements and our nationwide rollout of major appliances announced earlier this week. Accordingly, we are reaffirming our $1 billion in EBITDA for 2016."

Guidance:

The Company updated its 2016 full year guidance as follows:

• Comparable store sales: expected to increase 3 % to 4 %;
• Gross margin: now, expected to increase 10 to 30 basis points;
• SG&A dollars: expected to decrease versus 2015;
• EBITDA: expected to be $1 billion;
• Adjusted earnings per share: expected to be positive;
• Free cash flow: expected to improve versus 2015.

For earnings history and earnings-related data on J.C. Penney (JCP) click here.