Despite lower sales, JCPenney’s Q1 EBITDA grows 63 percent

J. C. Penney Company’s comparable sales 0.4 percent for the first quarter. EBITDA improved 68 million dollars to 176 million dollars for the quarter, a 63 percent improvement from the same period last year.

“The first quarter was clearly challenging from a sales perspective. Although our business was not immune to the issues facing other retailers, I am pleased that we were able to deliver our second consecutive quarter of positive operating profit. We exceeded our profitability expectations, achieving a 63 percent increase in EBITDA to 176 million dollars for the quarter," said Marvin R. Ellison, CEO, adding, “We are maintaining our annual comp guidance of 3 percent to 4 percent and reaffirming our one billion dollars in EBITDA for 2016."

Manages to increase EBITDA in Q1

For the quarter, men's, Sephora and footwear and handbags were the company's top performing divisions. Geographically, the North East and Ohio Valley were the best performing regions of the country. For the first quarter, gross margin was 36.2 percent of sales.

Adjusted EBITDA improved 80 percent to 153 million dollars, a 68 million dollars improvement from the same period last year. For the first quarter, the company delivered a 55 percent improvement in net income over the prior year to a loss of 68 million dollars or 0.22 dollar per share.

Aims to achieve one billion dollars in EBITDA

The company has updated its 2016 full year guidance and expects comparable store sales to increase 3 percent to 4 percent; gross margin to improve 10 to 30 basis points; EBITDA to be one billion dollars and adjusted earnings per share to be positive.

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