Despite slowing sales, J.C. Penney narrows its Q3 loss to $188M

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J.C. Penney reported that it lost $188 million during its third quarter.

Danielle Abril

Staff Writer- Dallas Business Journal

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J.C. Penney Co. Inc. reported that it lost $188 million, or 62 cents per share, on $2.76 billion in revenue during its third quarter, an improvement over the same quarter last year.

The Plano-based retailer beat analyst expectations, which projected that the company would lose 80 cents this quarter.

Penney (NYSE: JCP) lost $489 million, or $1.94 per share, on $2.78 billion during the same quarter last year.

Same store sales were flat for the quarter and gross margin improved 710 basis points from last year. The company also completed a $400 million unsecured debt offering during the third quarter. It ended the quarter with $1.9 billion in liquidity.

"This quarter shows the progress we are making in the final phase of J.C. Penney's turnaround," CEO Mike Ullman said in a released statement. "Like most retailers, following a strong start to the back-to-school season, sales did slow in September and October as unseasonably warm weather hindered the sale of fall goods."

During the third-quarter sales call, Ullman said that Penney's has gained ground with its core customers. Traffic is still negative, he said.

"Our customers are back but we know we need to increase their trips and spend," he said, reiterating the strategies for growth he outlined at an investor meeting in October.

The call was also the first time investors had the opportunity to hear from upcoming CEO Marvin Ellison, who will take the top post Aug. 1. Ellison said he's been at Penney for a week and a half and has been impressed by the company's passion to complete the turnaround.

"I feel I have joined JCP at the right time," he said, adding that while it's too soon to share strategies, he's looking forward to maintaining an open dialogue.

Danielle covers technology, retail, restaurants and hospitality for the Dallas Business Journal. Subscribe to our new TechFlash email newsletter.