JC Penney Reports A Big Net Loss

JC Penney reported Q4 adjusted loss of $US0.68 per share, on revenue of $US3.78 billion.

This is probably not comparable to the analyst estimates for $US0.11 per share. Revenue also missed expectations for $US3.86 billion.

Q4 comp sales were up 2%, modestly below expectations for a 2.1% rise.

Selling, general and administrative expenses (SGA) totaled $US1 billion and the company took $US50 million in ” restructuring and management transition charges.”

“With the most challenging and expensive parts of the turnaround behind us, we will focus on improving gross margin, managing expense and steadily growing our sales in 2014,” CEO Myron Ullman III said in a press release.

“Our strategic plan seeks to enhance performance across all of the key drivers of our business: merchandising, marketing, store experience, jcp.com, our teams, and our operations. The goal is to deliver consistently improving financial results, and to restore JCPenney as a leader in American retail.”

The company also expects Q1 comp store sales to rise 3-5% and expect full-year 2014 guidance to be in the mid-single digits.

The stock is up 6.3% after hours to $US6.28.

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