JC Penney: loss widens, but guidance reaffirmed.

(CercleFinance.com) - JC Penney Company reported a higher quarterly loss as it liquidated inventory at closing stores, although said that it was "encouraged" by the improved performance of its apparel business.


The US retailer said on Friday that total its net sales increased 1.5% to 3 billion dollars in the second quarter to 29 July, with comparable store sales falling by 1.3%.

The Texas-based company reported a net loss of 62 million dollars, or 20 cents per share, compared with a loss of 56 million dollars, or 18 cents per share, a year earlier.

While selling, general and administrative (SG&A) for the quarter declined, the group liquidated inventory at 127 closing stores, which had a negative impact on its gross margin and EPS.

JC Penney confirmed its EPS guidance for the year, which is expected between 0.40 dollar and 0.65 dollar. It also expects comparable store sales to be more or less flat (between -1 % to +1 %).

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