Published on April 5th, 2017 | by itadmin

J.C. Penney Posts Weaker-Than-Expected Earnings for Q4 – Shares Take a Beating

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J.C. Penney Company Inc recently posted their financial results for the fourth quarter of the 2017 fiscal year. Their results were weaker than the market and analysts were expecting, which is why their shares took a beating and declined by more than 7 percent during after-hours trading.

The company that is based in Plano, Texas posted a loss for the quarter of $59 million, equating to a loss per share of approximately $0.19. This is compared to the same quarter of the previous year, when the company generated a profit of $35 million, which worked out to earnings per share of $0.11. The same quarter of the previous year saw the company benefit from a tax credit of $270 million. Without various items, the company managed to break even during this quarter.

J.C. Penney saw their sales advance by 2.9 percent, to reach a total of $3.89 billion for the quarter. Analysts, however, were expecting revenues of $3.87 billion with earnings per share of $0.11.

The company saw their sales advance by 12.5 percent via their online store, jcpenney.com, thus reaching $428 million for the quarter. Same store sales increased by 4.4 percent for the quarter.

J.C. Penney’s gross margin increased by 5.4 percent to reach 33.8 percent. Sales, general and administrative expenses increased by $28 million, to come out to a total $1.032 billion for the quarter. J.C. Penney closed out the year with $2.1 billion in liquidity.

The Chief Executive Officer of J.C. Penney, Myron E. (Mike) Ulman, III, stated that 2017 was a year of success for the company thanks to all the effort the teams put in and their outstanding execution. This enabled the company to increase their sales and their gross margin, allowing them to achieve their goal of generating a positive free cash flow, which represents $2.8 billion in improvements over the previous year.

J.C. Penney is expecting to generate comparable same store sales in FY 2017 higher by between 3 percent and 5 percent.

J.C. Penney saw their stock declined by 7.79 percent, thus trading at $8.41 per share during after-hours trading. The company has been trading between $5.9 and $11.3 over the past 52 weeks. J.C. Penney has a market cap of $2.59 billion.


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