J.C. Penney Co. Inc. (JCP) Thursday reported a swing to loss in the fourth-quarter from a profit last year, reflecting the absence of benefits from hefty tax gains recorded last year, despite a higher-than-expected revenue growth. Shares of the struggling department store chain plunged a near 10 percent, following the news.
Plano, Texas-based JC Penney reported a fourth-quarter loss of $59 million or $0.19 per share, compared to a profit of $35 million or $0.11 per share last year.
Excluding special items, adjusted earnings for the fourth quarter were breakeven per share, compared to an adjusted loss of $0.68 per share last year.
On average, 17 analysts polled by Thomson Reuters expected earnings of $0.11 per share for the quarter. Analysts' estimates typically exclude special items.
The department-store chain's sales for the fourth quarter grew 2.9 percent to $3.89 billion from $3.78 billion a year earlier. Analysts had a consensus revenue estimate of $3.87 billion for the fourth quarter.
Same-store sales rose 4.4 percent for the quarter. Investors consider same store sales an important measure of sales at established stores or stores open for at least a year.
Men's apparel, Home and Fine Jewelry were the company's top performing merchandise divisions during the quarter, JC Penney said in a statement.
Fourth-quarter gross margin improved 540 basis points to 33.8 percent from 28.4 percent last year.
Looking forward to the full year 2015, the company expects same-store sales to increase 3 to 5 percent.
The department store chain has been restructuring itself ever since Mike Ullman took over the reins after the forced exit of Ron Johnson, who failed in his attempts to boost sales by pulling out coupons and discounts. The company has been closing down stores to curb expenses.
Ullman himself will step aside as CEO of JC Penney on August 1, 2015. Marvin Ellison, former executive vice president of stores at Home Depot Inc., will take over as president and CEO.
Commenting on the results, designated CEO Marvin Ellison said, "I have been very impressed by what I have seen in my first few months at JCPenney. The passion and knowledge of our associates and their dedication to customer service is helping us take back share from our competitors, as we continue to find new ways to put the customer first."
Last month, reports said that JC Penney is considering bringing back its print catalog five years after the department store operator dumped it to focus more on online sales.
JCP closed Thursday's trading at $9.12, up $0.13 or 1.45%, on the NYSE. The stock, however, dropped $0.88 or 9.66% in the after-hours trade.
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