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.
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|
|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.
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