J. C. Penney misses by $0.35, misses on revs; lowers FY19 EPS and comp guidance; Q2 comps +0.3% below expectations
- Reports Q2 (Jul) loss of $0.38 per share, excluding non-recurring items, $0.35 worse than the S&P Capital IQ Consensus of ($0.03); revenues fell 7.5% year/year to $2.76 bln vs the $2.81 bln S&P Capital IQ Consensus.
- Comparable sales increased 0.3 % for the second quarter versus Street expectations of +1.0%.
- "This quarter we adjusted our approach to inventory management from 'buying to store capacity' to 'buying and chasing' into demonstrated sales trends. Inventory receipts continued to outpace total sales performance this quarter due to prior purchase commitments. As such, we took necessary actions to markdown and clear excessive inventory positions across many of our categories."
- "I want to take this opportunity to update our stakeholders on the progress of the CEO search. The process is going well and the Board has met with highly qualified candidates who have expressed a strong desire to become the next leader of JCPenney."
- Co issues lowers guidance for FY19, sees EPS of ($1.00) - ($0.80) from ($0.07) - $0.13, excluding non-recurring items, vs. $0.04 S&P Capital IQ Consensus. Comparable store sales: now expected to be approximately flat (prior guidance 0.0-2.0%). Street expectations +0.6%.
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