JC Penney (JCP) reports fourth quarter 2019 earnings

A girl shops for clothing at the JC Penney shop in the Roosevelt Subject Mall in Yard City, New York.

Saul Martinez | Bloomberg | Getty Illustrations or photos

J.C. Penney’s fourth-quarter earnings topped analysts’ expectations, regardless of steep revenue declines during the holiday getaway time, the organization said Thursday early morning.

Even though CEO Jill Soltau reported she was encouraged by the progress the business is creating, especially in its women’s apparel organization, the office retail store is still anticipating 2020 will carry even more declines in exact same-retailer gross sales advancement. 

The company has also stated it expects to close at the very least 6 of its department stores in 2020, when compared with it shuttering 18 division merchants and nine of its home furnishings shops in 2019. Much more certain aspects about these strategies will be provided in the course of an analyst day on April 7.

Its inventory, which trades beneath $1, jumped additional than 9% in premarket hrs on the information. Shares ended up not long ago up less than 1%.

This is how the enterprise did throughout its fiscal fourth quarter finished Feb. 1 as opposed with what analysts had been expecting, dependent on knowledge pulled by Refinitiv:

  • Earnings for every share: 13 cents, modified, vs. a loss of 6 cents expected
  • Profits: $3.49 billion vs. $3.44 billion expected
  • Very same-shop gross sales: down 7% vs. a drop of 7.3% envisioned

Through the fourth quarter, web cash flow shrunk to $27 million, or 8 cents per share, from $75 million, or 24 cents a share, a 12 months ago.

Excluding just one-time goods, Penney earned 13 cents a share, improved than the reduction of 6 cents for every share that analysts ended up expecting, as documented by Refinitiv.

Complete income fell 7.7% to $3.49 billion from $3.79 billion a calendar year back. Analysts were wanting for earnings of $3.44 billion.

Penney is now calling for same-store gross sales in fiscal 2020 to be down 3.5% to down 4.5%, excluding any effect from the coronavirus outbreak.

Whole similar-keep product sales in fiscal 2019 dropped 7.7%.

The Plano, Texas-primarily based division keep chain experienced now produced disappointing holiday break profits. Exact-store sales above a nine-week period that ended on Jan. 4 dropped 7.5%, Penney explained previous thirty day period. Penney has not noted a quarterly profits acquire due to the fact the 2017 holiday break season.

Penney, which has a marketplace cap of $233.3 million, has watched its shares drop far more than 40% about the past 12 months. Its stock at this time trades underneath $1. Penney shares experienced shut Wednesday up 4.7%.

Examine the total earnings push release right here.

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