JC Penney Posts Loss in Q2, Same-Store Sales Decline (JCP)

PUBLISHED: Aug 10 2012 @ 09:35 | Comments (0) | More info about Ed Liston

Retailer JC Penney Co.’s (NYSE:JCP) disastrous showing continued as it posted yet another quarterly loss as same-store-sales tumbled.

The company also said that it no more expects the full-year earnings to be in line with initial estimations and stopped short of providing revised guidance.

Despite the disappointing second-quarter results, JCP stock is up nearly 8% in early trading today.

Deteriorating sales have once again raised doubts over CEO Ron Johnson’s latest shift in pricing strategy.

For the fiscal second quarter, the company posted a loss of $147 million, or 67 cents a share, compared to profit of $14 million, or seven cents reported in the year earlier quarter. Excluding expenses, company’s loss stood at 37 cents a share, compared to a profit of 19 cents a share in the corresponding period of last year.

For the quarter, the company spent $159 million both for restructuring and management changeover charges. Analysts polled by Thomson Reuters forecasted a loss of 25 cents a share after excluding expenses.

Meanwhile, JCP’s same-store -sales contracted 22% for the quarter. Internet sales fell by 33% while total sales slumped 23%.

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