J.C. Penney on Friday reported income and same-store gross sales for the vacation quarter that fell wanting analysts’ expectations.
The corporate noticed much less promotional exercise throughout the quarter because it shrunk its stock, however higher on-line gross sales hampered revenue margins.
Its inventory was down greater than 10 p.c in premarket buying and selling on the information.
This is what the corporate reported for the fourth quarter of fiscal 2017 in contrast with what analysts had been anticipating (primarily based on a Thomson Reuters survey):
* Earnings per share: 57 cents, adjusted, vs. 47 cents anticipated.
* Income: $four.03 billion vs. $four.05 billion anticipated.
* Identical-store gross sales: 2.6 p.c progress vs. a rise of two.9 p.c anticipated.
Web earnings totaled $254 million, or 81 cents a share, in contrast with $192 million, or 61 cents a share, a yr in the past. The corporate reported a $75 million profit throughout the fourth quarter from new U.S. tax laws.
Excluding one-time objects, Penney earned 57 cents a share, 10 cents above Road estimates.
Income elevated 1.eight p.c throughout the interval to $four.03 billion, barely wanting analysts’ forecast.
Identical-store gross sales — a key metric for retailers — had been up 2.6 p.c, whereas analysts had been calling for two.9 p.c progress.
“In 2018, we’ll intensify our market share efforts in Home equipment, Mattresses and Furnishings, whereas persevering with to take steps to modernize our attire assortment and omni-channel,” CEO Marvin Ellison stated in an announcement.
The Plano, Texas-based division retailer chain’s ongoing turnaround efforts embrace liquidating extra attire stock, closing unprofitable shops and rising its private-label traces. Final quarter, those investments appeared to be paying off, as Penney’s same-store gross sales climbed practically 2 p.c forward of the vacations, surpassing analysts’ expectations.
Penney has seen constant progress in its magnificence division, which incorporates hair salons, Sephora make-up shops, and positive jewellery. It is also managed to achieve market share of home equipment as Sears Holdings closes extra shops.
To make certain, the corporate nonetheless has different obstacles to beat, as mall-based retailers should modify to gross sales transferring on-line. Penney not too long ago announced it would be closing one of its distribution centers, eliminating greater than 600 jobs. The corporate has said it will close eight stores in whole in 2018, in contrast with greater than 100 closures the yr prior.
A report circulated earlier this week that Penney could be readjusting its workforce, eliminating some full-time positions in shops, to chop prices. One other report stated Penney was slashing employees at its company headquarters in Texas.
“JCPenney is implementing a retailer staffing mannequin to simplify processes, enhance productiveness and handle bills,” a spokesman instructed CNBC in regards to the adjustments. The corporate declined to touch upon how many individuals could be impacted by the cuts at its company places of work.
As of Thursday’s market shut, J.C. Penney shares have climbed a bit of greater than 20 p.c thus far this yr.
This can be a creating story. Please verify again for updates.