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JCPenney Stock Continues to Fall after Its Fiscal 2Q17 Results
JCPenney Stock Continues to Fall after Its Fiscal 2Q17 Results
Why Did JCPenney’s Losses Widen in Fiscal 2Q17?
By Sharon Bailey | Aug 16, 2017 6:44 am EDT
JCPenney (JCP) reported a loss per share of $0.09 on an adjusted basis in fiscal 2Q17, which ended on July 29, 2017. Analysts were expecting the company’s fiscal 2Q17 loss to come in at $0.05 per share. JCPenney’s adjusted loss per share in fiscal 2Q17 was also higher than its adjusted loss of $0.05 per share in fiscal 2Q16.
What impacted the bottom line?
JCPenney’s adjusted loss per share was higher on a year-over-year basis in fiscal 2Q17 due to the impact of inventory liquidation at its closing stores. In fiscal 2Q17, JCPenney closed and liquidated inventory in 127 of the 138 stores that it intends to close in fiscal 2017.
Inventory liquidation offset 1.5% growth in the company’s fiscal 2Q17 sales. We’ll discuss JCPenney’s sales in Part 3 of this series.
Guidance intact
Despite the higher-than-expected loss in fiscal 2Q17, JCPenney kept its adjusted EPS guidance intact for fiscal 2017. The company expects its adjusted EPS to be $0.40–$0.65 for fiscal 2017. JCPenney delivered an adjusted EPS of $0.08 in fiscal 2016.
