JCPenney Q3 sales take hit, losses widen

US department store chain JCPenney reported a 10.7 percent drop in net sales for the third quarter of the year, taking it to 1.5 billion dollars, while losses for the retailer widened.

The company’s revenue took a 11.1 percent hit, dropping dramatically to 1.6 billion dollars, largely driven by an 18.8 percent decline in credit card revenues.

Merchandise gross profit rose by 270 basis points, aided by an expansion of national and private brands within the women’s apparel, activewear and accessories categories.

Digital sales also rose 200 basis points, while overall inventory was down 12 percent compared to the same period last year.

Penney’s further reported operating losses of 10 million dollars, dropping from its prior operating income of two million dollars one year ago.

Net loss for the period widened by 76.5 percent to 30 million dollars, and EBITDA for the nine months to October 28, EBITDA fell 55.3 percent.

The lacklustre results come three years on from JCPenney’s rescue from bankruptcy by Simon Property Group and Brookfield Property Partners, which set about simplifying the business, upgrading its technology usage and improving its store network.