JCPenney sales go slack as traffic sputters
JCPenney swung to a loss during the second quarter as weaker traffic drove down sales.
PLANO, Texas – JCPenney swung to a loss during the second quarter as weaker traffic drove down sales.
Sales for the quarter ended Aug. 3 fell 8.9% to $1.5 billion, according to a filing from JCPenney Intermediate Holdings LLC, the retailer’s holding company. Same-store sales down 7.7%. Operating loss was $14 million compared to operating income of $55 million in the year-ago quarter. Net loss was $33 million compared to net income of $36 million in last year’s Q2.
“Traffic overall remained soft during the period, but the overall trend for store trips improved when compared to fiscal 2023,” the company reported.
JCPenney ended the quarter with approximately $1.7 billion of liquidity and less than $500 million outstanding on its long-term debt. It had no outstanding borrowings on its line of credit.
The relaunch of the JCPenney Rewards program at the end of the first quarter pulled in 830,00 new rewards members and more than 30,000 new credit customers during the quarter. Store Net Promoter Scores improved over four points when compared to the same period last year.
The company ended the quarter with 661 store locations.
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