Executive Summary

• JCPenney reported 1Q16 adjusted EPS of $(0.32) versus the consensus estimate of $(0.38). EBITDA was $176.0 million, beating the consensus of $129.1 million.
• Total revenues were $2.81 billion versus consensus of $2.92 billion. Comps were down 0.4% versus consensus of 3.2%. Comps were positive in February, then turned negative in March and early April before turning positive again at the end of April.
• Management maintained most of its prior guidance for the full year, with the exception of its expectations for gross margin, which it now expects to increase by 10–30 basis points versus 40–60 basis points previously.