J.C. Penney holiday-quarter adjusted profit misses estimates

February 26
6:29 PM 2015

Department store chain J.C. Penney Co Inc (JCP.N) reported a lower-than-expected quarterly adjusted profit as it discounted more during the holiday season and invested in store expansions.

The company's shares fell as much as 9.2 percent to $8.28 in extended trading on Thursday. The stock has gained 53 percent in the past year.

J.C. Penney posted a loss of $59 million, or 19 cents per share, in the fourth quarter ended Jan. 31, compared with a profit of $35 million, or 11 cents per share, a year earlier. The year-earlier results included a one-time tax gain of $270 million.

Excluding items, J.C. Penney's earnings broke even on a per share basis, compared with the average analyst estimate of a profit of 11 cents per share, according to Thomson Reuters I/B/E/S.

The company, whose rivals include Sears Holdings Corp (SHLD.O) and Macy's Inc (M.N), said comparable sales at stores open more than a year rose 4.4 percent in the holiday quarter. Analysts had estimated a rise of 3.8 percent, according to research firm Consensus Metrix.

The Plano, Texas-based company said it expected same-store sales to grow 3-5 percent in the current quarter ended May, compared with market estimates for 3 percent growth.

Total net sales rose 3 percent to $3.89 billion, helped by higher demand for household goods, apparel and jewelry during the holiday shopping season.

Analysts on average had expected sales of $3.87 billion.

© 2023 VCPOST, All rights reserved. Do not reproduce without permission.


Join the Conversation

Subscribe to VCpost newsletter

Sign up for our Deals of the Day newsletter.
We will not spam you!

Real Time Analytics