JCPenney (JCP) joined a growing list of big-name retailers Opens a New Window. reporting disappointing same-store sales in the first quarter, sending shares plunging as much as 12% in pre-market action.
The company said its net loss widened to $180 million or 58 cents per share during the quarter, from 22 cents per share the year prior. Excluding one-time charges associated with the chain’s restructuring efforts, the company said adjusted net income improved by $116 million to six cents per share, compared to a net loss of $97 million the year prior. Wall Street analysts had expected a loss of 21 cents per share for the quarter.
Revenue dipped from the year prior, coming in at $2.71 billion, slightly below expectations for $2.77 billion. Meanwhile, sales at stores open at least a year – a key metric for retailers – dropped 3.5% for the quarter. The company said it saw positive sales growth in its home, Sephora, fine jewelry, and salon categories.
“We continue to make encouraging progress in the company’s competitive and financial position despite our top-line performance during the quarter,” CEO Marvin Ellison said in a statement. “Our teams remain committed to executing on our strategic growth initiatives and we are confident in our ability to drive sustainable growth and long-term profitability for JCPenney.”
JCPenney has been pressured by e-commerce competitors including Amazon (AMZN) online and TJX (TJX) brands Marshalls and Home Goods as shoppers prefer convenience and treasure hunt experiences over traditional department-store formats. Over the last several quarters, Ellison and his team have reiterated their focus on better positioning the company toward e-commerce platforms, leveraging some of its bricks-and-mortar stores that can serve as online-order distribution centers.
Earlier this year, the company said it would shutter 138 stores in 41 states in mid-June, but delayed the planned liquidation and closure processes to July 31 Opens a New Window. after shoppers flocked to those locations seeking discounted products.