J.C. Penney punished on weak sales, cut in margin guidance

|About: J. C. Penney Company, Inc. (JCP)|By:, SA News Editor

CEO Marvin Ellison: "The first quarter was clearly challenging from a sales perspective."

While the company exceeded expectations on the bottom line as SG&A expenses fell $93M to 31% of sales (improved 280 bps Y/Y), revenues missed sizably, and comp sales fell 0.4% Y/Y. The company, however, is maintaining full-year comp sales guidance of positive 3-4%. Gross margin guidance, however, is cut to just a 10-30 basis point increase for the year.

Adjusted EPS is expected to be positive and free cash flow should improve vs. last year.

The conference call is at 8:30 ET.

Previously: J.C. Penney beats by $0.06, misses on revenue (May 13)

JCP -13.6% premarket

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