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Penney 2Q loss in line
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August 14, 2001: 10:39 a.m. ET
Retailer meets expectations on flat sales as turnaround continues
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NEW YORK (CNNfn) - J.C. Penney Co. saw second-quarter losses increase in line with Wall Street expectations and reiterated that it expects to be in the black in the third- and fourth-quarters.
For the quarter ended July 28, the Plano, Texas-based department store and drugstore chain reported a loss of $53 million, or 20 cents a share, excluding special items. That was in line with the forecasts of analysts surveyed by earnings tracker First Call but wider than a loss of $19 million, or 15 cents a share, a year earlier.
Shares of Penney (JCP: up $0.10 to $26.49, Research, Estimates) slipped Tuesday morning following the announcement. Despite problems and an overall slowing in retail sales, shares of Penney have been climbing for most of the past year as investors endorsed its restructuring and store closings.
The company said it is on target to earn 10 to 15 cents a share in the third quarter. Analysts forecast EPS of 12 cents in that period. And the company said it expects full-year EPS to be in the 30 to 35 cent range, also in line with the First Call forecast of 31 cents.
"Results for the quarter met expectations and provide some encouraging signs that we are starting to make progress toward the rebuilding of our businesses," CEO Allen Questrom said.
Including special items, the company posted a net loss of $69 million, or 23 cents a share, compared with net income of $23 million, or 10 cents a share, a year earlier.
Second-quarter revenue was flat at $7.2 billion. Department store sales fell 5 percent to $3.9 billion as the company continued to shut stores. But the sale of department stores open at least a year, a closely watched retail measure known as same-store sales, increased 2.3 percent in the quarter, reversing the 1.5 percent same-store sale decline in the year-earlier period.
Sales at Eckerd drugstores increased 7.1 percent to $3.4 billion, while same-store sales in the division climbed 8.7 percent. The company said pharmacy sales climbed 11.9 percent while other merchandise sales rose only 1.6 percent. 
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U.S. retail sales flat in July - Aug. 14, 2001
Wal - Mart 2Q meets estimates - Aug. 14, 2001
Home Depot 2Q beats estimates - Aug. 14, 2001
J.C. Penney is back in style on the Street - Aug. 7, 2001
Sears to top 2Q, Wal - Mart, Penney sales gain - July 12, 2001
J.C. Penney's sales decline in February - March 1, 2001
J.C. Penney 4Q loss narrower than expected - Feb. 22, 2001
New Eckerd chief named - Sept. 22, 2000
J.C. Penney appoints CEO - July 27, 2000
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