Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

J.C. Penney's loss smaller than expected, shares soar 13%

Stock Markets Nov 15, 2019 10:06AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Levi's men clothing is pictured inside a JC Penney store in Oceanside

By Nivedita Balu and Melissa Fares

(Reuters) - J.C. Penney Co Inc (N:JCP) on Friday reported a smaller-than-expected quarterly loss on lower ad spending and higher margins, results Chief Executive Jill Soltau said showed efforts to revive sales and profits at the department store are taking hold.

Shares of the Plano, Texas-based company were trading up nearly 13% at $1.24 before the bell on Friday.

The 117-year-old retailer, one of the worst-hit by the surge in online shopping in the past decade, has been desperate to attract modern shoppers. In August, it partnered with resale clothing company thredUP, adding second-hand women's clothing and handbags to its merchandising mix.

It is also testing a new store to attract customers with everything from a yoga studio, a videogame lounge and lifestyle workshops.

Such efforts are a part of Soltau's turnaround strategy, aimed at reassuring investors it can lure back shoppers into stores amid fierce competition from online giants like Amazon.com Inc (O:AMZN) and discount retailers like TJX Cos Inc's (N:TJX) Marshalls and T.J. Maxx chains.

"We are beginning to see results – both in our numbers and how we operate as a business," Soltau said in a statement on Friday.

Soltau, hired late last year from craft and fabrics seller Jo-Ann Stores, is attempting to restore Penney's roots as a retailer of mid-priced apparel for middle-class families.

Soltau also pushed to stop sales of appliances and limit its furniture offerings, while reducing inventory at stores to boost margins and closing underperforming outlets.

Retail traffic data from analytics firm Placer.ai showed traffic turned positive in August, rising 13.3% above the baseline for the period, above the 7.3% rise in 2018.

J.C. Penney's rivals, including Macy's (N:M) and Nordstrom Inc (N:JWN), are also looking to bring in shoppers to new stores with cafes, donut shops, fine-dining restaurants and full bars with Instagrammable views.

Excluding one-time items, J.C. Penney reported a loss of 30 cents per share, narrower than the average analyst estimate of a loss of 55 cents.

The company said its net loss narrowed to $93 million, or 29 cents per share, in the quarter ended Nov. 2, from $151 million, or 48 cents per share, a year earlier.

J.C. Penney's total revenue fell 8.5% to $2.5 billion in the third quarter.

The company also said it now expects its adjusted earnings before interest, tax, depreciation and amortization for the year to exceed $475 million, compared with its prior outlook of $440 million to $475 million.

It maintained its full-year forecast for comparable store sales.

Sales at stores open for more than a year fell 9.3% compared with expectations of a 7.74% slide, according to data from IBES Refinitiv.

J.C. Penney's loss smaller than expected, shares soar 13%
 

Related Articles

GameStop announces four-for-one stock split
GameStop announces four-for-one stock split By Reuters - Jul 06, 2022

(Reuters) - GameStop Corp (NYSE:GME) said on Wednesday its board has approved and declared a four-for-one split of the video game retailer's class A common stock.

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email