J.C. Penney Q2 Loss Widens Significantly - Quick Facts

(RTTNews) - J.C. Penney Co. Inc. (JCP) reported a significantly wider second-quarter 2013 net loss of $586 million or $2.66 per share, compared with a $147 million, or $0.67 per share loss, a year before. The latest results reflect a $0.99 of loss associated with the tax valuation allowance; a $0.52 of loss on retirement of debt associated with the tender offer; a $0.21 of restructuring and management transition charges; a $0.04 for primary pension plan expense; and a $0.28 of benefit on the net gain on the sale of a non-operating asset, the company added.

Quarterly adjusted net loss totaled $477 million, or $2.16 per share, excluding the impact from the loss on retirement of debt, restructuring and management transition charges, primary pension plan expense, and the net gain on the sale of a non-operating asset. On average, 9 analysts polled by Thomson Reuters expected loss per share of $1.06 for the quarter. Analysts' estimates typically exclude one-time items.

The company clocked net sales of $2.66 billion in the quarter, versus $3.02 billion in the comparable quarter last year, down by 11.9%. Twenty-two analysts estimated revenues of $2.76 billion for the quarter. Quarterly comparable-store sales were down 11.9%, and were hurt by the company's failed prior merchandising and promotional strategies, which resulted in unusually high markdowns and clearance levels in the second quarter.

Gross margin was 29.6 percent of sales, compared with 33.2 percent in the same period last year. Gross margin was adversely impacted by lower than expected sales, and a higher level of clearance merchandise sales during the quarter including merchandise carried over from the first part of the year, the company added.