JCPenney (JCP) 2Q18 Results: Earnings Miss, Net Sales Negatively Impacted by Store Closures; Company Lowers Guidance

Key Points

• JCPenney reported 2Q18 net sales of $2.76 billion, down 7.5% year over year and below the $2.81 billion consensus estimate. Adjusted EPS was $(0.32), down from $(0.15) from the year-ago quarter and below the $(0.05) consensus estimate.
• Comparable sales were up 0.3% for the period. Children’s, jewelry, Sephora, women’s apparel and salon were the company’s top performing divisions and categories during the quarter.
• The company lowered its full-year guidance and now expects adjusted EPS of $(1.00)–$(0.80), from previous guidance of $(0.07)–$0.13 and the $0.04 consensus estimate. Comps are now expected to be flat, versus previous guidance for growth of 0.0%–2.0%