J.C. Penney beats by $0.03, misses on revenue
- J.C. Penney (NYSE:JCP): Q4 EPS of $0.64 beats by $0.03.
- Revenue of $3.96B (-1.0% Y/Y) misses by $20M.
- reports comparable sales fell 0.7% in Q4 vs. -0.5% consensus estimate.
- The company says it top performing categories were Home, Sephora, Salon and Fine Jewelry.
- Gross margin fell 100 bps to 33.1% of sales due in part to a higher mix of promotional online sales. Analysts expected a market closer to 34%.
- SG&A expenses improved 70 bps to 23.4% of sales.
- “We are pleased that in the face of a very challenging 2016 retail environment we delivered our first positive net income since 2010,” says CEO Marvin Ellison.
- Looking ahead, J.C. Penney expects comparable sales growth of -1% to +1% and EPS to fall in a range of $0.40 to $0.65.
- The company also says it will close 130 to 140 stores in the next few months and offer voluntary retirement packages to 6K employees.
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