JC Penney Pops Despite Weak Results
Shares of the once famed JC Penney (NYSE:JCP) traded to the upside on Wednesday morning following the company’s quarterly results. The company posted third-quarter loss excluding items of $1.81 per share, significantly greater than a loss of 93 cents a share in the third quarter of last year. On the top line, JC Penney watched its revenue decreased to $2.78 billion from $2.93 billion a year ago. These results came in below analyst expectations on both the top and bottom lines. The street had expected the struggling retailer to report a quarterly loss excluding items of $1.77 a share on $2.79 billion in revenue, according to a consensus estimates.
JC Penney cautiously announced its same-store sales fell 4.8 percent in the quarter. The company said, however, that it had positive same-store sales in October and said it was encouraged by early sales in November. Many retail analysts have looked at November sales as a introductory slice of the holiday season. Over the next couple months it will be interesting to see if the company can regain its customer base without sacrificing margins and comparable sales.
In 2013, the stock has been a highly contested name on the street. Disappointing comparable sales and revenues have scared many investors with weak hands out of their long positions. Shares of the stock have remained on a downward trajectory despite broad market strength so far this year. Year to date, shares are down by more than 50 percent in the face of 25 percent S&P returns. At the time of this writing, shares of the company were trading to the upside by 52 cents to $9.25 per share in the pre-market session.
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