JCPenney (JCP) is scheduled to announce its fiscal 2Q17[1. fiscal 2Q17 ended July 29, 2017] results on August 11. In a July 10 press release, Marvin R. Ellison, JCPenney’s chairman and chief executive officer, indicated that the company expects to report significant improvement in its fiscal 2Q17 sales compared to its first quarter numbers.
JCPenney’s sales have declined for three consecutive quarters despite its aggressive growth initiatives. JCPenney and its department store peers like Kohl’s (KSS) are facing a tough retail environment in which online retailers like Amazon (AMZN) are gaining market share. Fiscal 1Q17, which ended on April 29, 2017, was the fifth consecutive quarter in which Kohl’s sales declined.
More on JCP’s fiscal 1Q17 sales
JCPenney’s sales declined 3.7% on a year-over-year basis to ~$2.7 billion in fiscal 1Q17. The company missed analysts’ consensus sales estimate of ~$2.8 billion. The company’s sales decline was due to a challenging February. JCPenney faced challenges in the apparel category in fiscal 1Q17.
However, items like active apparel and dresses performed well. Merchandise categories that delivered solid results in the first quarter included Home, Sephora, Fine Jewelry, and Salon. The company’s same-store sales declined 3.5% in fiscal 1Q17.
Analysts expect JCPenney’s sales to decline ~2.8% to ~$2.8 billion in fiscal 2Q17, which ended on July 29, 2017. Rival Kohl’s sales are expected to decline 1.5% to $4.1 billion in fiscal 2Q17.
Analysts expect the company’s fiscal 2017 sales to decline 2.8% to $12.2 billion. JCPenney’s guidance issued in May 2017 indicates fiscal 2017 same-store sales to range from -1.0% to 1.0%.
In the next part of this series, we’ll look at the company’s margins.