Reduction In 1Q Profits For J.C. Penney
March 28, 2008
Friday saw J.C. Penney Co. announce a new, more conservative, estimate for their first quarter profits. The company revised their earlier estimate of between 0.75c and 0.80c per share, to more like 0.50c per share.
According the the statement released by Penney, the Easter holiday period brought less than expected sales, which the company predicts will continue throughout March with declines in the low double-digits for same-store sales. This will in turn lead to high single-digit diminution for the first quarter of this year, against earlier predictions of low single-digit reductions for both phases.
The CEO and Chairman of J.C. Penney, Myron Ullman, said that confidence in the company by consumers is at a low not seen for many years. Though analysts from FactSet Research had forecasted the company to bring in 0.75c per share first quarter earnings, Penney’s stocks have fallen in premarket trading by 13%, now selling at $34.90.