J. C. Penney Company, Inc. (JCP) saw its loss widen to $180 million, or $0.58 a share for the quarter ended Apr. 29, 2017. In the previous year period, the company reported a loss of $68 million, or $0.22 a share. On an adjusted basis, net profit for the quarter stood at $19 million, or $0.06 a share compared with a net loss of $97 million, or $0.32 a share in the last year period. Revenue during the quarter dropped 3.74 percent to $2,706 million from $2,811 million in the previous year period. Gross margin for the quarter expanded 11 basis points over the previous year period to 36.33 percent. Operating margin for the quarter stood at negative 3.88 percent as compared to a positive 0.78 percent for the previous year period.
Operating loss for the quarter was $105 million, compared with an operating income of $22 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $255 million compared with $153 million in the prior year period. At the same time, adjusted EBITDA margin improved 398 basis points in the quarter to 9.42 percent from 5.44 percent in the last year period.
Marvin R. Ellison, chairman and chief executive officer said, "We continue to make encouraging progress in the Company’s competitive and financial position despite our top-line performance during the first quarter. While February was a very challenging month for JCPenney and broader retail, we are pleased with our comp store sales for the combined March and April period, which improved significantly versus February. The recent sales trends, combined with the improvement in women’s apparel and our growth initiatives led by Sephora inside JCPenney, jcp.com and major appliances, provide us with the confidence to maintain our sales guidance for the full year. Additionally, our investment in pricing and merchandising systems allowed us to deliver a 10 basis point increase in gross margin over last year, in light of the growth in appliances and e-commerce. Also, through our de-leveraging efforts and improved financial condition, we earned yet another credit rating upgrade this quarter. 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."
For fiscal year 2017, J. C. Penney Company, Inc. expects diluted earnings per share to be in the range of $0.40 to $0.65 on adjusted basis.
Operating cash flow remains negative
J. C. Penney Company, Inc. has spent $346 million cash to meet operating activities during the quarter as against cash outgo of $394 million in the last year period. Cash flow from investing activities was $61 million for the quarter as against cash outgo of $11 million in the last year period.
The company has spent $239 million cash to carry out financing activities during the quarter as against cash outgo of $80 million in the last year period.
Cash and cash equivalents stood at $363 million as on Apr. 29, 2017, down 12.53 percent or $52 million from $415 million on Apr. 30, 2016.
Debt comes down marginally
J. C. Penney Company, Inc. has recorded a decline in total debt over the last one year. It stood at $4,602 million as on Apr. 29, 2017, down 2.77 percent or $131 million from $4,733 million on Apr. 30, 2016.
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