EmailJ.C. Penney (ICP $25.94 -0.93) reported second quarter earnings of $0.07 per share, in-line with the Capital IQ Consensus Estimate consensus of $0.07. (company lowered EPS guidance in July)
Revenues fell 0.8% year/year to $3.91 billion versus the $3.92 billion consensus.
When compared to the peak margins achieved in last year's second quarter, gross margin decreased approximately 110 bps to 38.3 percent of sales reflecting the softer than anticipated selling environment early in the quarter and the resulting higher level of promotional activity.
The company issued downside guidance for the third quarter with EPS of $0.15-0.20, including $0.05 in restructuring, versus the $0.25 Capital IQ Consensus Estimate and revenues approximately 250 bps below comp growth of 2-3% to approximately $4.17-4.21 billion versus the $4.22 billion Capital IQ Consensus Estimate, with gross margin rate down slightly year/year.
