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Last Update: 09-Nov-12 08:42 ET
JC Penney shares fall 6% following worse than expected earnings
J. C. Penney (JCP $20.33 -1.36) reported third quarter loss of $0.93 per share, excluding restructuring charges, asset sales and mgmt transition charges, non-recurring items, versus the the consensus of $0.02; GAAP EPS of ($0.56) missed the ($0.16) consensus; revenues fell 26.6% year/year to $2.93 billion the $3.29 bln consensus; comps -26% versus ests near -17%. "While the quarter overall was challenging, the performance of jcp's new brands and shops reinforces our conviction to transform jcpenney into a specialty department store. Today, jcp is really a tale of two companies. By far the largest part of our store is the old jcpenney, which continues to struggle and experience significant challenges as evidenced by our third quarter results. However, the new jcp, centered around the shop concept, is gaining traction with customers every day and is surpassing our own expectations in terms of sales productivity which continues to give us confidence in our long term business model." During the quarter, the co opened shops under the Levi's, Izod, Liz Claiborne, The Original Arizona Jean Co., and jcp brands. The colso opened 38 Sephora inside jcpenney stores, bringing the total to 386. Currently, the Company has transformed ~!2 million square feet of selling space into the shop format. The co l provide additional detail on year-to-date shop performance during an earnings presentation conducted later today.
