J.C. Penney Posts 2Q Profit But Provides Cautious View |
| Wall Street Journal - Aug 13, 2010 |
J.C. Penney Co. (JCP) swung to the black in its fiscal second quarter after booking prior-year pension expenses, but the department-store chain continues to trail some main rivals as it digests changes in its clearance strategy and catalog offering.
Shares were down 2% to $20.38, as the company gave a cautious third-quarter view and cut its earnings target for the year to the range of $1.40 to $1.50 a share from $1.64, below analyst estimates. Penney's stock is down 23% so far this year.
J.C. Penney forecast third-quarter earnings of 16 cents to 20 cents on revenue growth of 1% to 2% and a same-store sales increase of 2% to 3%. Analysts polled by Thomson Reuters projected a 24-cent profit and 1.9% revenue increase to $4.26 billion.
"What it reflects is a conservative approach to what continues to be an uncertain consumer climate, particularly for the moderate consumer," Chairman and Chief Executive Myron Ullman III said of the forecast on a conference call.
Read Full Article from Wall Street Journal
- Posted: 2010-08-13 20:35:51
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