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JCP: JCPenney Earnings = Less Bad

jcp-stock-jcpenney-earningsThe JCPenney earnings numbers for the third quarter could best be described as “less bad.” Revenue at JCP fell 5.1% on a year-over-year basis, while same-store-sales slipped 4.8%.

Actual JCPenney earnings — or in this case, the net loss — widened to a loss of $1.81 per share vs. the year-ago loss of 93 cents per share. JCP stock analysts were only looking for a loss of $1.72 per share, so from a relative perspective, the JCPenney earnings report was a disappointment. Nevertheless, JCP stock gained more than 8% after the numbers were posted.

There are signs of new life for the company, however, outside of the JCPenney earnings numbers for Q3. In October, same-store-sales grew by 0.9% — the first same-store-sales improvement since late-2011.

The ongoing concern about liquidity and longevity are still apt to be a drag on JCP stock in the future, though. The retailer has been forced to discount much of its inventory in order to get it out of the way for new goods. Plus, JCPenney has yet to increase revenue at a pace that’s on par with growing expenses, and ended the third quarter with less cash than it started it with.

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