J.C. Penney (NYSE:JCP) unveiled its latest quarterly earnings results early Tuesday, bringing in a loss that was wider than expected, while its sales also missed the mark, sending JCP stock plummeting.
The department store chain — which is headquartered in Plano, Texas — said that for its first quarter of its fiscal 2019, it posted a loss of 47 cents per share. This figure was considerably wider than the Wall Street consensus estimate of 38 cents per share.
J.C. Penney added that its sales for the period came in at $2.44 billion, which was below the Wall Street guidance of $2.47 billion, according to data from analysts who were surveyed by Bloomberg. Additionally, the company’s comparable sales took a hit, sliding 5.5% when compared to its year-ago quarter.
CEO Jill Soltau insisted that the company is in the process of turning things around at the moment. “We have made good progress on each of our immediate action steps highlighted last quarter, including our continued efforts to reduce and enhance our inventory position, which resulted in a 16 % reduction in our inventory and a meaningful improvement in our free cash flow this quarter,” she said.
“As our inventory rationalization effort continues, we are testing a number of strategies around optimal inventory levels and assortment choice counts with a goal of delivering an improved experience for our customers and maximizing our return on investment,” Soltau added.
JCP stock is down about 8.3% on Tuesday.