One day before the end of its fiscal year third quarter, J.C. Penney updated its quarterly and full-year guidance following a decision to accelerate inventory liquidation, most notably in apparel.
For the quarter, officials with the department store retailer said it expects comparable store sales to increase in the range of 0.6% to 0.8%, exclusive of depreciation and amortization. Adjusted earnings per share losses for the quarter are expected to be in the range of $0.40 to $0.45.
Additionally, J.C. Penney officials also said yearly comparable stores sales will be flat to down 1%, with adjusted earnings per share anticipated to be up between $0.02 and $0.08.
In a prepared statement, Marvin Ellison, J.C. Penney Chairman and CEO, said the company in the third quarter made a “strategic decision” to clear its women’s apparel department and other apparel categories of slow moving merchandise. Following this decision, he said, the retailer saw “an improvement in performance.”
The company also combined its price, planning and allocation teams to work under the oversight of its chief financial officer. Ellison said centralizing these functions will allow the company to streamline pricing, promotion and markdown strategies and consolidate all forecasting and planning capabilities.