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JCPenney Q1 net sales and earnings fall

By Prachi Singh

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Report

J. C. Penney Company’s first quarter net sales were 2.7 billion dollars compared to 2.8 billion dollars last year. Comparable store sales were down 3.5 percent for the quarter. Net loss was 180 million dollars or 0.58 dollar per share.

Commenting on the results, Marvin R. Ellison, Chairman and CEO said in a press release, "The recent sales trends, combined with the improvement in women's apparel and our growth initiatives led by Sephora inside JCPenney, jcp.com and major appliances, provide us with the confidence to maintain our sales guidance for the full year."

Review of the first quarter results

JCPenney said sales under home, Sephora, fine jewelry and salon all grew positively, and were the company's top performing divisions during the quarter. Geographically, the southwest and southeast were the best performing regions of the country.

For the first quarter, gross margin was 36.3 percent of sales, an increase of 10 basis points compared to the first quarter last year. Adjusted net income improved 116 million dollars or 0.38 dollar per share to 0.06 dollar per share for the first quarter this year compared to a net loss of 97 million dollars or 0.32 dollar per share, last year.

EBITDA was 40 million dollars compared to 176 million dollars for the same period last year. Adjusted EBITDA for the quarter improved 102 million dollars or 67 percent to 255 million dollars compared to the first quarter last year.

JCPenney reaffirms full year guidance

The company reaffirmed its 2017 full year guidance that includes the expected impact of the company's previously announced store closures. Comparable store sales are expected to be negative 1 percent to positive 1 percent; gross margin expected to be up 20 to 40 basis points versus 2016 and adjusted earnings per share are expected to be in the range of 0.40 dollar to 0.65 dollar.

Picture:Facebook/JCPenney

JCPenney