J.C. Penney Q2 Loss Narrower Than Estimates; Reaffirms FY16 Oulook

(RTTNews) - Department store chain J.C. Penney Co. Inc. (JCP) on Friday reported a loss for the second quarter that narrowed from last year on higher sales and lower operating expenses.

Adjusted loss per share for the quarter was narrower than analysts' expectations. Looking ahead, the company reaffirmed its fiscal 2016 financial outlook.

Plano, Texas-based J.C. Penney's second-quarter net loss was $56 million or $0.18 per share, narrower than loss of $117 million or $0.38 per share in the same period last year.

The latest quarter's results include write-off of unamortized debt issuance costs of $34 million related to the closing of the real estate term loan refinancing.

Excluding items, adjusted loss for the quarter was $0.05 per share, compared to loss of $0.40 per share in the prior-year period.

On average, 18 analysts polled by Thomson Reuters expected the company to report loss of $0.15 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter rose 1.5 percent to $2.92 billion from $2.88 billion in the year-ago period. Analysts were looking for revenues of $2.93 billion for the quarter.

Comparable sales for the quarter increased 2.2 percent, compared to an increase of 4.1 percent last year.

Total expenses for the quarter declined 6.1 percent from last year to $1.01 billion.

Looking ahead to fiscal 2016, JC Penney reaffirmed its outlook for comparable store sales to increase 3 to 4 percent, adjusted earnings per share to be positive, and gross margin to increase 10 to 30 basis points.