JCPenney (JCP) 1Q18 Results: New Sales Negatively Impacted by Store Closures, Company Results Below Estimates

Executive Summary

• JCPenney reported 1Q18 net sales of $2.58 billion, down 4.3% year over year and below the $2.62 billion consensus estimate. Comparable sales were up 0.2% for the period. Store closures in FY17 and unseasonal weather during the first quarter negatively impacted results.
• Adjusted EPS was $(0.25), versus the $(0.24) consensus estimate and up from $(0.60) in the year-ago quarter.
• The company revised its full-year guidance and now expects comparable sales growth of 0.0%–2.0% and adjusted EPS of $(0.07)–$0.13, compared with the consensus estimate of $0.17.