J.C. Penney studies Q2 2019 earnings
The division retailer chain reported a internet lack of $48 million, or 15 cents a share, narrower than its lack of $101 million, or 32 cents a share, a 12 months in the past. Excluding one-time gadgets, Penney misplaced 18 cents a share, in comparison with analysts’ forecasts of a lack of 31 cents.
Regardless of the smaller loss, gross sales fell greater than had been anticipated. Income for the quarter ending Aug. three fell 7.4% to $2.62 billion from $2.eight billion a 12 months in the past. That was barely decrease than analyst expectations of $2.69 billion.
Gross sales at Penney shops open for at the very least a 12 months have been down 9%, worse than an anticipated drop of 5.2% p.c.
Final week, the corporate acquired discover that it was prone to being delisted from the New York Inventory Change. Its inventory fell under $1 on July 19 and has been buying and selling under that degree ever since. On Wednesday, it hit an all-time low of 53 cents. In buying and selling earlier than the market’s open Thursday, shares have been buying and selling increased.
Penney can also be burdened with round $Four billion in debt and has introduced that it’s working with advisors to restructure it.
Whereas buyers have been not sure whether or not CEO Jill Soltau, who was employed 10 months in the past, can flip the 117-year-old firm round, she continues to announce new initiatives. On Thursday, the corporate mentioned it might accomplice with secondhand retailer ThredUp. On Wednesday, Macy’s additionally introduced a partnership with the corporate.
Since arriving at Penney, Soltau has introduced plans to shut 18 shops, together with 9 residence and furnishings shops in 2019. She additionally made the choice to get out of the equipment enterprise, which it had beforehand closely targeted on.
Shares of the corporate have been down greater than 45% since January, bringing it to a market worth of about $181 million.