J.C. Penney Co., Inc., an operator of a network of department stores in the United States and Puerto Rico, recently announced results for the second quarter of 2009. The company posted a smaller-than-expected net loss this week, due to cost reductions, but management is cautious that full-year results might miss expectations.
During the second quarter ended August 1, 2009, J.C. Penney reported a net loss of $1 million, or nil per share, compared with a year-earlier profit of $117 million, or 52 cents per share. Analysts predicted a loss of 1 cent per share, according to Reuters Estimates. During the same time period, sales declined 7.9 percent to $3.94 billion, while same-store sales dropped 9.5 percent.
Myron “Mike” Ullman, the companyâ€™s chief executive officer, stated, â€œFrom my perspective the consumer is further behind the recovery than the statistics would indicate.â€
The company said it now expects this yearâ€™s sales to decline 5.5 percent to 6.0 percent, with same-store sales down 7.0 percent to 7.5 percent. Management had previously forecasted a same-store sales drop of approximately 9 percent.