Losses widen at JC Penney despite same-store sales doubling market expectations

Iain Gilbert WebFG News | 10 Nov, 2017 16:23 | | |


American department store chain JC Penney reported same-store sales growth that more than doubled analysts' forecasts, sending its stock price surging.

The firm said its comparable sales had gained 1.7% in its third quarter, well ahead of the between 0.6 to 0.8% it predicted back in October and analyst averages of 0.7%.

However, losses continued to widen at the fashion retailer with the group posting a loss of $128m for the three months leading to 28 October compared to the $67m of red ink in which it incurred a year earlier.

JC Penney drastically reduced its full-year forecast in October after announcing significant discounts in its women's wear department in order to move older stock.

"We took aggressive actions to clear slow-moving inventory, primarily allowing for an improved apparel assortment heading into the holiday season," said chief executive officer Marvin Ellison.

The company lost $0.33 per share, considerably less than the $0.40 to 0.45 it had anticipated as net sales dropped 2% to $2.81bn, which was also ahead of analysts' forecasts for $2.77bn.

As of 1540 GMT, shares had gained 15.73% to $3.20 each.

More news

09:00 Quiz posts 35% jump in revenue in first results since IPO

In its first trading update as an AIM-listed company, fashion brand Quiz reported a 35% jump in interim revenue, driven by growth across all of its channels.

08:54 Thomas Cook tumbles as weak UK overshadows results

Thomas Cook said it was on track to meet expectations this year but problems in the UK, the tour operator’s biggest market, overshadowed its annual results.

08:42 London open: Stocks edge up ahead of Budget; Thomas Cook tanks

London stocks edged tentatively higher in early trade on Wednesday as investors sifted through corporate releases ahead of the Autumn Budget.

08:04 Sage completes cloud transformation and promises 2018 acceleration

Sage Group kept revenue growth and margins above their annual target and said the launch of its Business Cloud software suite would enable it to "accelerate momentum" in 2018.

08:04 SSP full-year profit up, announces £100m special dividend

SSP reported a rise in full-year profit on Wednesday as it announced a special dividend of around £100m, but said that like-for-like revenue growth next year is expected to drop slightly.

07:49 Countryside Properties operating profit, completions up amid strong demand

Housebuilder and regeneration partner Countryside Properties posted a rise in annual operating profit on Wednesday as revenue and completions grew amid strong demand.

07:47 United Utilities profit rises 10% in first half

United Utilities profit rose 10% in the first half as the water and waste management company increased revenue and cut costs.

07:44 Hammerson offloads stake in Strasbourg Place des Halles, United Utilities profit ahead in first half

London open

07:38 London pre-open: Stocks to nudge up ahead of Autumn Budget

London stocks were set to nudge up at the open on Wednesday as investors eyed the Autumn Budget.

07:29 Wednesday newspaper round-up: Uber hack, Hinckley Point, LSE

Uber concealed a massive global breach of the personal information of 57 million customers and drivers in October 2016, failing to notify the individuals and regulators, the company acknowledged on Tuesday. Uber also confirmed it had paid the hackers responsible $100,000 to delete the data and keep the breach quiet, which was first reported by Bloomberg. – Guardian