J.C. Penney (NYSE: JCP) struggled out of the gate on Friday, after the retailer reported revenue and same-store sales for the holiday quarter that fell short of analysts' expectations.
The company saw less promotional activity during the quarter as it shrunk its inventory, but greater online sales hampered profit margins.
Penney also confirmed Friday it was cutting staff at its corporate headquarters and from within some stores, in a bid to reduce expenses. The cuts are expected to save the company as much as $25 million a year.
Earnings per share came in at 57 cents, adjusted, vs. 47 cents expected.
Revenue was $4.03 billion vs. $4.05 billion expected, up 18% from the prior-year, slightly short of analysts' forecast. Same-store sales: 2.6% growth vs. an increase of 2.9% expected.
Net income totaled $254 million, or 81 cents a share, compared with $192 million, or 61 cents a share, a year ago. The company reported a $75-million benefit during the fourth quarter from new U.S. tax legislation.
On Friday, though, investors feared Penney's latest successes could be waning. Its quarterly results contrast much stronger reports from retailers Macy's (NYSE: M) and Kohl's (NYSE: KSS) earlier in the week, and its outlook for the current year was troubling.
Looking to fiscal 2018, Penney said it expects to earn between five and 25 cents per share, largely below analysts' average expectation of 20 cents.
Friday, Penney shares dipped 38 cents to $9.8%.
