JCPenney, the US-based fashion retailer, has rolled out financial results for the second quarter ended July 29, 2017. The company’s comparable sales plunged 1.3 per cent during the quarter. Its adjusted EBITDA stood at US $ 196 million compared to US $ 233 million last year.
The fashion company recorded a net loss of US $ 62 million this year against a net loss of US $ 56 million in the period a year prior. Operating income stumbled to US $ 53 from US $ 76 million.
During the second quarter, the company liquidated inventory in 127 of its closing stores. The move negatively impacted the gross margin and EPS of JCPenney.
The retailer’s net sales, however, increased by 1.5 per cent to US $ 3.0 billion against US $ 2.9 billion in the corresponding quarter last year.
Marvin Ellison, Chairman and CEO, JCPenney said, “We are pleased to deliver a top line sales increase of 1.5 per cent. While broader retail remains challenged, we are encouraged by the improved performance in our total apparel business, including a significant acceleration in kids’ apparel. The company is off to a strong start in August for the all-important back to school season. We are excited by this momentum and expect to deliver improved results in the back half of the year.”
