LONDON, UK / ACCESSWIRE / April 16, 2018 / Active-Investors.com has just released a free earnings report on J. C. Penney Co., Inc. (NYSE: JCP). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/'symbol=JCP. J. C. Penney reported its fourth quarter and fiscal 2017 operating and financial results on March 02, 2018. The department store chain topped earnings estimate and provided guidance for FY18. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, J. C. Penney most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Earnings Highlights and Summary
J. C. Penney's total net sales for the 14 weeks ended February 03, 2018, increased 1.8 % to $4.031 billion compared to $3.96 billion for the 13 weeks ended January 28, 2017. The Company's comparable sales increased 2.6 % in the reported quarter. J. C. Penney's reported numbers were marginally short of analysts' estimates of $4.035 billion.
During Q4 2017, J. C. Penney's Jewelry, Home, Sephora, Footwear and Handbags, and Salon were top performing divisions in the reported quarter. Geographically, the Southeast and Gulf Coast were the best performing regions for the Company in the US.
For Q4 2017, J. C. Penney's cost of goods sold, excluding depreciation and amortization (D&A), was $2.68 billion, or 66.4 % of sales, compared to $2.65 billion, or 66.9 % of sales in Q4 2016. The improvement was primarily driven by decreased promotional activity in the reported quarter resulting from an improved inventory position. This improvement was partially offset by the continued growth in the Company's online and major appliance businesses and higher shrink rates.
During Q4 2017, J. C. Penney's selling, general, and administrative (SG&A) expenses were $943 million compared to $925 million for Q4 2017. As a percentage of sales, SG&A expenses were 23.4 % on a y-o-y basis. The Company's reductions primarily in store controllable costs and marketing spend were partially offset by lower credit income and higher incentive compensation.
J. C. Penney's net income was $254 million, or $0.81 per share, for Q4 2017 compared to net income of $192 million, or $0.61 per share, in Q4 2016. The improvement was primarily due to a $75 million tax reform benefit recorded in the reported quarter.
For Q4 2017, J. C. Penney's adjusted net income was $179 million, or $0.57 per share, compared to adjusted net income of $202 million, or $0.64 per share, for Q4 2016, which included a gain of $62 million, or $0.20 per share, associated with the sale of the Company's home office. J. C. Penney's earnings beat Wall Street's estimates of $0.45 per share.
For the full year 2017, J. C. Penney's total net sales decreased 0.3 % to $12.51 billion compared to $12.55 billion in FY16. The Company's comparable sales increased 0.1 % on a y-o-y basis.
For FY17, J. C. Penney reported net loss was $116 million, or $0.37 per diluted share, compared to net income of $1 million, or $0.00 per share, in FY16. This reduction was driven primarily by restructuring charges associated with store closures and voluntary early retirement program in FY17.
For FY17, J. C. Penney's adjusted net income increased to $68 million, or $0.22 per share, compared to adjusted net income of $24 million, or $0.08 per share in FY16.
Cash Matters
J. C. Penney's inventory at year-end 2017 was $2.76 billion, reflecting a drop 3.2 % on a y-o-y basis. The Company's capital expenditures for FY17, net of landlord allowances, were $375 million. J. C. Penney's free cash flow was a positive $213 million for FY17, reflecting an increase of $210 million versus FY16.
As of February 03, 2018, J. C. Penney's cash and cash equivalents were $458 million. During FY17, the Company reduced its outstanding debt position by over $600 million. J. C. Penney ended FY17 with liquidity in excess of $2.3 billion.
Outlook
For full year 2018, J. C. Penney is forecasting comparable store sales to be in the range of 0.0% to 2.0%, and adjusted earnings per share is estimated to be $0.05 to $0.25.
Stock Performance Snapshot
April 13, 2018 - At Friday's closing bell, J. C. Penney's stock dropped 3.12%, ending the trading session at $3.11.
Volume traded for the day: 14.34 million shares.
Stock performance in the last month - up 1.97%
After last Friday's close, J. C. Penney's market cap was at $1.01 billion.
The stock is part of the Services sector, categorized under the Department Stores industry.
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