J. C. Penney Holiday Comparable-store Sales Decline 0.8%; Stock Down

(RTTNews) - J. C. Penney Company Inc. (JCP) said that its comparable store sales for the combined nine-week November and December period resulted in a 0.8 percent decline over the same period last year, which equates to a 3.1 percent positive two-year stack of comparable store sales for the same time period. The company said that weakness in women's apparel continued to impact its performance. It expects to deliver fourth consecutive quarter of positive operating profit.

In pre-market trade, JCP is currently trading at $7.52, down $0.34 or 4.33 percent.

"The first three weeks of November proved to be challenging in stores, consistent with the trends in the broader retail industry. However, the business improved and overall comp sales for the six-week period from Thanksgiving week through the end of December were positive. During the holiday season we saw strength in appliances, outerwear, boots, toys, Sephora and fine jewelry. However, weakness in women's apparel continued to impact our performance. We are also encouraged by a very strong performance in our e-commerce business, evidenced by double-digit growth," said Marvin R. Ellison, chairman and chief executive officer of JCPenney.

The company also reaffirmed its full-year EBITDA target of $1 billion for fiscal 2016.

"As we prepare for a new fiscal year, our turnaround in profitability remains on track, and I am pleased that we expect to deliver our fourth consecutive quarter of positive operating profit," Ellison added.

The company will report its full fourth quarter and fiscal 2016 results on February 24.