The information 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 and as such is considered to be a marketing communication.
On Thursday 14 August JCPenney is expected to announce an adjusted earnings per share of -$0.903, an improvement on the -$1.12 loss the company posted last quarter. Sales are estimated to be $2.77 billion, helping the quarterly loss rise from -$344 million to -$293 million.
JCPenney has been a little slow to act upon changes to consumer buying habits, and it is now halfway through its restructuring plan. In an effort to catch up with its counterparts like Macy’s, by improving sales from non-core store operations, it has improved its website and developed smartphone apps to help steer shoppers to its online platforms. In the last set of figures the company saw a 25% increase in online sales year-on-year. Considering the head start that its competitors have had, the company will be hoping to see improvements following another three months of implementation.
Shares in JCPenney have remained relatively rangebound over the last six months, as it has failed to break above the $10 level and predominantly found support around $8. Currently the 50- and 100-day moving averages are just below the $9 level, and it would take some particularly poor figures to break this support.