JC Penney (JCP) reports fourth quarter 2019 earnings
A female stores for garments at the JC Penney shop in the Roosevelt Area Shopping mall in Back garden Town, New York.
Saul Martinez | Bloomberg | Getty Visuals
J.C. Penney’s fourth-quarter earnings topped analysts’ expectations, regardless of steep gross sales declines during the getaway time, the company said Thursday morning.
While CEO Jill Soltau stated she was inspired by the progress the organization is building, significantly in its women’s attire business enterprise, the department shop is nevertheless anticipating 2020 will bring even further declines in exact same-retail outlet product sales advancement.
The company has also mentioned it expects to close at least 6 of its section stores in 2020, compared with it shuttering 18 division retailers and 9 of its home furnishings retailers in 2019. Extra unique particulars about these ideas will be offered for the duration of an analyst day on April 7.
Its inventory, which trades below $1, jumped additional than 9% in premarket hours on the news. Shares had been not too long ago up considerably less than 1%.
Here is how the company did throughout its fiscal fourth quarter ended Feb. 1 in comparison with what analysts have been anticipating, based mostly on details pulled by Refinitiv:
- Earnings for each share: 13 cents, altered, vs. a reduction of 6 cents envisioned
- Profits: $3.49 billion vs. $3.44 billion predicted
- Exact same-retailer revenue: down 7% vs. a drop of 7.3% expected
Through the fourth quarter, web money shrunk to $27 million, or 8 cents for every share, from $75 million, or 24 cents a share, a 12 months in the past.
Excluding a person-time merchandise, Penney earned 13 cents a share, better than the reduction of 6 cents for every share that analysts were expecting, as noted by Refinitiv.
Full income fell 7.7% to $3.49 billion from $3.79 billion a year back. Analysts were being seeking for earnings of $3.44 billion.
Penney is now contacting for exact-shop sales in fiscal 2020 to be down 3.5% to down 4.5%, excluding any impact from the coronavirus outbreak.
Full exact same-retail store profits in fiscal 2019 dropped 7.7%.
The Plano, Texas-dependent department store chain experienced already unveiled disappointing vacation income. Very same-retail store sales over a 9-7 days period that ended on Jan. 4 dropped 7.5%, Penney mentioned final month. Penney has not noted a quarterly profits attain due to the fact the 2017 getaway year.
Penney, which has a market cap of $233.3 million, has watched its shares slide more than 40% above the earlier 12 months. Its stock now trades under $1. Penney shares had shut Wednesday up 4.7%.
Study the full earnings press launch in this article.