J.C. Penney Reports Earnings and Announces More Store Closures

Struggling retail department store chain J.C. Penney reported earnings this week for the fourth quarter and the full year ended February 2nd, 2019.

According to the company’s press release, “on a shifted basis, which compares the 13 weeks ended Feb. 2, 2019 and Feb. 3, 2018, comparable sales decreased 4.0 %. On an unshifted basis, comparable sales for the fourth quarter decreased 6.0 %. For the full year, comparable sales decreased 3.1 %. Net income for the quarter was $75 million, or $0.24 per share, and net loss for the full year was $255 million, or ($0.81) per share. “

The company’s CEO Jill Soltau remarked, “For the past few months, I have met with and listened to JCPenney associates throughout the organization, as well as our valued suppliers, customers and other partners, to gain their candid perspectives on our Company, both positive and constructive. Based on everything I have seen and heard, I am even more convinced that JCPenney is a revered brand that has the capacity to deliver improved results. In spite of our past financial performance, we have already taken meaningful steps to drive improvement in key businesses such as women’s apparel, active apparel, special sized apparel and fine jewelry.”

She continued, “As we forge a path to sustainable profitable growth, our decisions included eliminating non-core and low gross margin product categories, significantly reducing unproductive inventory and continuing the revitalization of our women’s apparel business. While we are pleased with these actions, we know we need to move faster to reestablish the fundamentals of retail, build capabilities focused on satisfying our customers’ wants and needs and ensure that our digital and store operations operate seamlessly to provide an experience that wins with customers. We have much work to do to position JCPenney for success and create long-term value for our shareholders, however our unwavering focus and discipline is already enabling meaningful progress.”

The company also said that it will be closing 18 department stores and nine home and furniture stores this year and that additional store closures are a possibility in 2020 and beyond.

“I think as we go forward — as we mentioned, we’re closing 18 [department stores] this year,” Treasurer Trent Kruse remarked. “I think it’s safe to assume that as you roll into 2020 and future years, it’s likely to see some continuation of that effort. [It’s] hard to say now, but I think that’s a fair read.”

Disclaimer: We have no position in J C Penney Company Inc. (NYSE: JCP) and have not been compensated for this article.