J.C. Penney same-store sales miss estimates, cuts profit forecast

J.C. Penney Co Inc’sfirst-quarter sales at established stores missed analysts’ estimate on Thursday as unusually cool weather in April hurt demand for spring clothing, pushing the company to cut its full-year profit forecast.

Shares of the department store operator fell 11 percent in premarket trading after it forecast full-year adjusted earnings per share between a loss of 7 cents and profit of 13 cents.

The company had previously forecast adjusted profit to be between 5 cents and 25 cents per share.

J.C. Penney is the second retailer after Home Depot Incto blame the prolonged cold weather for a drop in same-store sales. The retailer’s same-store sales rose 0.2 percent, missing the analysts’ estimate of about 2 percent, according to Thomson Reuters I/B/E/S.

The company’s net loss narrowed to $78 million, or 25 cents per share, in the quarter ended May 5, from $187 million, or 60 cents per share, a year earlier.

Excluding one-time items, J.C. Penney lost 22 cents per share, missing expectations by 1 cent.
Total net sales fell 4.3 percent to $2.58 billion, missing analysts estimate of $2.61 billion.