J.C. Penney Sales Rise on Higher Demand for Apparel, Jewelry

Earns JC Penney
Mark Lennihan/AP
By Nathan Layne and Nayan Das

Department store chain J.C. Penney (JCP) 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 Thursday. The stock has gained 53 percent in the past year.

J.C. Penney posted a loss of $59 million, or 19 cents a share, in the fourth quarter ended Jan. 31, compared with a profit of $35 million, or 11 cents a 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 a share, according to Thomson Reuters I/B/E/S.

The company, whose rivals include Sears Holdings (SHLD) and Macy's (M), 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.
Read Full Story

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.