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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