JC Pen­ney re­ports loss but tops expectations

Kuwait Times - - BUSINESS -

PLANO, Texas: JC Pen­ney Co said yes­ter­day sales that rose 6.4 per­cent at es­tab­lished lo­ca­tions in the third quar­ter and ex­pressed con­fi­dence about its abil­ity to com­pete in the up­com­ing hol­i­day shop­ping sea­son. The depart­ment store op­er­a­tor’s bet­ter-than-ex­pected sales fol­low dis­ap­point­ing re­sults by Macy’s and Nord­strom, which are seen as hav­ing more higher-in­come cus­tomers.

JC Pen­ney also said its gross mar­gin im­proved in the quar­ter, driven by sup­ply chain pro­duc­tiv­ity and im­prove­ments in mar­gins for its sale items. For the full year, the com­pany expects sales to be up be­tween 4 to 5 per­cent at es­tab­lished lo­ca­tions from the pre­vi­ous year.

But the com­pany, based in Plano, Texas, is still try­ing to re­gain its foot­ing and nev­er­the­less re­ported a loss for the pe­riod. For the quar­ter ended Oct. 31, the com­pany said its loss nar­rowed to $137 mil­lion, or 45 cents per share. Losses, ad­justed for one-time gains and costs, came to 47 cents per share. An­a­lysts had forecast a steeper loss of 58 cents per share, ac­cord­ing to Zacks In­vest­ment Re­search.

Rev­enue rose to $2.9 bil­lion, also ex­ceed­ing Street fore­casts of rev­enue of $2.86 bil­lion. Pen­ney shares have risen 36 per­cent since the be­gin­ning of the year. The stock has risen 13 per­cent in the last 12 months. Its shares were down 3 per­cent at $8.53 in pre­mar­ket trad­ing yes­ter­day. — AP

NEW YORK: Shop­pers visit a JC Pen­ney store in New York. The Texas-based re­tailer re­ported quar­terly fi­nan­cial re­sults yes­ter­day. — AP

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