J.C. Penney (NYSE:JCP) on Thursday reported earnings and sales for the holiday quarter that topped analysts' expectations, as the company said it was successful in reducing a glut of unsold inventory in 2018.
The company said it plans to shut 18 department stores in 2019, including three it already announced when it warned of dismal holiday sales last month. It will additionally close nine home and furniture locations, as it looks to trim its massive real estate footprint to focus on its most profitable shops.
During the quarter, adjusted earnings per share came in at 18 cents vs. 10 cents expected. Revenue proved to be $3.79 billion vs. $3.78 billion expected. Same-store sales were down 4% vs. a drop of 4.3% expected.
The retailer reported net income for the quarter ended Feb. 2 of $75 million, or 24 cents per share, compared with $242 million, or 77 cents a share, a year ago. Excluding one-time items, Penney earned 18 cents a share, eight cents ahead of analysts' forecast.
Sales at Penney stores open for at least 12 months, on a shifted basis comparing the 13-week period ended Feb. 2 this year to last, were down 4%, better than an expected drop of 4.3%. The company said it was able to cut its inventory by 13.1% last year.
Penney has struggled with managing its inventory — getting dated apparel off shelves to make way for new styles — and hasn't been able to take advantage of rival Sears' struggles as much as anticipated.
Shares climbed 28 cents, or 22.6%, to $1.51
