JC Penney is tanking after terrible sales, outlook

Before you go, we thought you'd like these...



JCP revenues fall short, lowers profit margin outlook

Shares of retailer JC Penney are tanking Friday morning after the company painted a gloomy outlook for the rest of 2016.

The company posted a loss of -$0.22 per share against analyst expectations of -$0.30 a share. Sales, however, fell far short of expectations, generating $2.81 billion, just shy of the projected $2.92 billion. Comparable store sales also declined -0.4% against analyst expectations of a 3.3% increase.

SEE ALSO: McDonald's worker has a message for those who think he's wasting his life

In addition, the retailer slashed its projections for the year. JC Penney cut its outlook for gross margins to an increase of only 0.1% to 0.3% from the original projection of 0.4% to 0.6%.

"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," said CEO Marvin Ellison in a press release accompanying earnings.

RELATED: Business Insider's top retail brands

16 PHOTOS
Business Insider top retail brands
See Gallery
JC Penney is tanking after terrible sales, outlook
of
SEE ALL
BACK TO SLIDE
SHOW CAPTION +
HIDE CAPTION

In response to the news, shares of the company are diving in pre-market trading. As of 7:42 a.m. ET, the stock was down a little over 13% at $6.76 a share.

Screen Shot 2016 05 13 at 7.42.16 AMReuters/Natalie Behring

NOW WATCH: FORMER GREEK FINANCE MINISTER: The single largest threat to the global economy

See Also:

SEE ALSO: Nordstrom is getting annihilated after abysmal earnings


Read Full Story

People are Reading