JC Penney shows signs of progress even as sales dip

Bloomberg

JC Penney Co showed some signs of progress in its recovery effort over the holiday season, though a sixth straight quarter of declining sales show it still has a way to go.
The company’s same-store sales results that weren’t as bad as analysts had expected, fell 7% in the fourth quarter. That’s compared with a drop of 7.5%, the average of estimates compiled by Consensus Metrix. Revenue for the period also declined.
It reported adjusted earnings per share for the fourth quarter of 13 cents that beat the analyst estimate for a loss of 6 cents.
Chief executive officer Jill Soltau has been battling to reverse falling foot traffic in stores and improve inventory management, while navigating a significant debt burden. Soltau said she was “encouraged” by the progress especially in the women’s apparel business, this quarter, which spanned the holiday season.
“We knew it would take time to restore discipline and return growth to JC Penney,” she said.
The company said it will close at least six more stores in fiscal 2020, following analysts’ calls for reductions. Shares alternated between gains and losses in pre-market trading.
In January, the company, alongside several of its department store peers, reported a drop in same-store sales for the holiday period. Last week, it posted a 5.6% drop in adjusted comparable sales for the year, which exclude major appliances and in-store furniture categories.
The company expects full-year fiscal 2020 same-store sales to drop between 3.5% and 4.5%.