- Prachi Singh |
J. C. Penney Company said that for its fiscal third quarter ended October 28, 2017, total net sales decreased 1.8 percent to 2.81 billion dollars compared to 2.86 billion dollars in the same period last year, which the company said was primarily the result of the 139 stores closed this year through the end of the third quarter. Comparable sales increased 1.7 percent for the quarter, resulting in a positive two-year stack of 0.9 percent.
Commenting on the results, JCPenney’s Chairman and CEO Marvin R. Ellison said in a statement: "During the third quarter, we took aggressive actions to clear slow-moving inventory, primarily allowing for an improved apparel assortment heading in to the holiday season. While these actions had a negative short-term impact on profitability in the third quarter, we firmly believe it was the right decision for the company as we transition into the fourth quarter and fiscal 2018."
Highlights of JCPenney’s results
Home, Sephora, footwear and handbags, women's specialty and salon, JCPEnney said, were the company's top performing divisions during the quarter. Geographically, the Gulf Coast and Midwest were the best performing regions of the country.
For the third quarter, the company's net loss was 128 million dollars or 0.41 dollar per share, compared to 67 million dollars or 0.22 dollar per share in the same period last year. This reduction, the company said, was driven in large part by increased cost of goods sold, restructuring charges associated with the store closures and a charge related to settlement accounting on the company's pension plan. Adjusted net loss was 102 million dollars or 0.33 dollar per share compared to 65 million dollars or 0.21 dollar per share, last year. Adjusted EBITDA was 108 million dollars compared to 174 million dollars last year.
The company's fiscal 2017 full year guidance includes comparable store sales to be negative 1 percent to 0.0 percent; cost of goods sold to be up 100 to 120 basis points versus 2016; and adjusted earnings per share to be a positive 0.02 dollar to 0.08 dollar.