J. C. Penney Posts Q1 Adj. Loss Of $1.16/shr; Comps. Up 6.2% - Quick Facts

(RTTNews) - J. C. Penney Company, Inc. (JCP) reported a first-quarter net loss of $352 million or $1.15 per share, compared to a loss of $348 million or $1.58 per share, previous year. Loss before income taxes was $344 million, compared to a loss of $547 million, last year. Adjusted net loss was $353 million or $1.16 per share, for the quarter.

On average, 19 analysts polled by Thomson Reuters expected the company to report a loss per share of $1.25 for the quarter. Analysts' estimates typically exclude special items.

Net sales increased to $2.80 billion from $2.64 billion. Same store sales increased 6.2%. The Company said that, going forward, it will simplify its same store sales calculation to better reflect year-over-year comparability. Under the new methodology, comparable store sales rose 7.4 %, which includes online sales that grew 25.7%. Analysts expected revenue of $2.71 billion for the quarter.

Gross margin was 33.1% of sales, compared to 30.8% in the same quarter last year, representing a 230 basis point improvement. Operating loss was $247 million, which represents a 49.2% improvement over last year, the company said.

The company expects its second-quarter: comparable store sales to increase mid-single digits; and gross margin to improve sequentially versus first quarter of 2014.

The company expects its 2014 full-year: comparable store sales to increase mid-single digits; and gross margin to improve significantly versus 2013.

The company also announced that it has obtained a fully committed and underwritten $2.35 billion senior secured ABL credit facility to replace the existing $1.85 billion ABL bank line, which matures in April 2016. Due to favorable market conditions, the company decided to pursue this new facility proactively to extend the maturity several years and enhance its liquidity position. The company expects the financing to provide better pricing terms and is expected to add $500 million of incremental liquidity during peak seasonal needs.