JC Penney Q4 results: shares up 28% after earnings revenue beats estimates

JC Penney's stock soars after a better-than-expected Q4 earnings report and reports of store closings.

US dollar after Q4 results Source: Bloomberg

JC Penney stock rose after a positive Q4 earnings report. JC Penney Q4 results surpassed Wall Street expectations.

JC Penney earnings: key figures

Earnings per share(EPS) $0.18
Revenue $3.79 billion
Net income $75 million
Same store sales -4.0%

JC Penney earnings

JC Penney earnings per share were $0.18, higher than the expected $0.11. JC Penney revenue was $3.79 billion, slightly above the projected $3.78 billion.

While the EPS and revenue were positive, the retailer had negative news as well. JC Penney’s net income was down significantly from $242 million a year ago to $75 million this year.

JC Penney's same store sales declined by 4% and the retailer is closing 27 underperforming stores. The move is meant to coincide with the company’s plan to focus more on apparel and less on appliances and furniture.

Chief executive officer, (CEO), Jill Soltau, noted that the store took action to drive JC Penney's apparel and jewellery sales higher.

‘We have already taken meaningful steps to drive improvement in key businesses such as women’s apparel, active apparel, special-sized apparel and fine jewellery,’ said Soltau.

What does JC Penney’s Q4 results mean for its share price?

JC Penney’s Q4 results could mean positive news for its share price. JC Penney stock rose significantly after beating revenue estimates.

How do JC Penney’s Q4 results compare to other retailers?

JC Penney’s Q4 results were positive and similar to Macy’s. Both retailers had better-than-expected Q4 earnings reports.

What is JCPenney’s Q1 forecast?

JC Penney’s Q1 forecast will include restructuring amid the store closures and focus on women’s apparel. The chain will take a loss of $15 million in Q1 to cover the closure of stores and severance pay for employees. Soltau noted that the changes to the store should increase JC Penney’s Q1 profits.

‘As we forge a path to sustainable profitable growth, our decisions included eliminating non-core and low-gross-margin product categories, significantly reducing unproductive inventory and continuing the revitalization of our women's apparel business,’ said Soltau.

‘While we are pleased with these actions, we know we need to move faster to reestablish the fundamentals of retail. We have much work to do to position JCPenney for success and create long-term value for our shareholders,' added Soltau.


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Bid
Offer
Updated
Change
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
China 300
-
-
-
-

Prices above are subject to our website terms and agreements. All share prices are delayed by at least 20 minutes. Prices are indicative only.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.