J.C. Penney Co. said it lost $1 million, or break-even per share, in the
quarter ended Aug. 1. That compares with a profit of $117 million, or
52 cents per share, in the year-ago period.
Second-quarter results were depressed by a charge related to its
pension plan of $106 million, or 28 cents per share after tax, compared
with the year-ago period. The loss topped Wall Street expectations due to inventory management or cost-cutting moves.
Revenue was $3.94 billion, down almost 8% from $4.28 billion in the year-ago period.
Same-store sales, or sales at stores opened at least a year, fell 9.5%
for the period. The best-performing categories were shoes and women's
apparel, while the weakest areas included children's apparel.
For the third quarter, Penney expects same-store sales to decline
anywhere between 5% to 7% and total sales to drop between 3% and 5%. For the full year, Penney said that same-store
sales should fall anywhere from 7% to 7.5%. Total sales
should decline in the range of 5.5% to 6%.
Based on better-than-expected results for the second quarter, the company raised its annual profit outlook.
It now expects earnings per share to be in the range of 75 cents to 90
cents. That's up from its previous range of 50 cents to 65 cents per
share. Analysts surveyed by Thomson Reuters estimated 89 cents per
share.
