JCPenney Preannounces A 16% Drop In Same-Store Sales

JCPenney logo at Manhattan Mall

JCPenney has released its preliminary earnings results.

According to Bloomberg, the retailer posted preliminary revenue of $2.64 billion versus estimates for $2.73 billion.

Comp store sales are down 16.6%, according to Bloomberg.

The stock is up 2% in after-hours trading.

Here’s the release: 

J. C. Penney Company, Inc. Reports Selected Preliminary Fiscal First Quarter Financial Information Company Expects to Report Full Quarterly Financial Results on May 16, 2013 PLANO, Texas (May 7, 2013) — J. C. Penney Company, Inc. (NYSE: JCP) today released preliminary unaudited selected financial information for its fiscal first quarter ended May 4, 2013. The Company is providing this information in connection with its previously announced proposed senior secured term loan financing transaction. Given the Company’s fiscal first quarter ended three days ago, the information that follows is preliminary and based upon information available as of today. The Company expects to release its full fiscal first quarter results on May 16, 2013.

As of the date of this release, the Company has not completed its financial close process for the quarter. During the course of that process, the Company may identify items that would require it to make adjustments, which may be material, to the information presented below. As a result, the estimates below constitute forward-looking information and are subject to risks and uncertainties, including possible adjustments to preliminary operating results.

Preliminary Unaudited Financial Disclosures

For the first quarter of fiscal year 2013, jcpenney anticipates total sales of approximately $2.635 billion, a decrease of approximately 16.4 per cent from $3.152 billion in the same period last year, and a comparable store sales decrease of approximately 16.6 per cent for the quarter compared to the same period last year. The sales decline in the first quarter is partially attributable to construction activities in connection with the transformation of the home departments in 505 stores.

The Company noted that results for the quarter also reflect its prior pricing and marketing strategies, which are being changed under new leadership. The Company estimates cash and cash equivalents to be approximately $821 million as of May 4, 2013. Total debt is expected to be approximately $3.818 billion as of May 4, 2013, including amounts outstanding on the revolving credit facility of $850 million, long-term debt of $2.868 billion, and capital leases and notes payable of $100 million.

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