NEW YORK, NY / ACCESSWIRE / November 19, 2018 / Retailers Nordstrom and J.C. Penney were both in the red on Friday on disappointing
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J. C. Penney Company, Inc.
J. C. Penney Company, Inc. shares were down 5.15% on Friday with roughly 24.8 million shares traded, higher than the stock's average trading volume of about 14.1 million shares. The struggling retailer reported its fiscal 2018 third-quarter results last week that disappointed Wall Street. For the quarter, J.C. Penney reported sales at stores open at least a year for the third quarter dropped 5.4% while analysts were only expecting a 0.5% loss. The Company withdrew its profit guidance and lowered its sales expectations for the year. Comparable store sales for fiscal 2018 are now expected to be down low-single digits. CEO Jill Soltau laid out a plan on the earnings release, "I'm excited to be here and to have the privilege of leading such an iconic quintessential American brand with a strong and long-lasting heritage. In the coming weeks and months, I will continue to meet with and learn from our team throughout the entire organization, talking with them about what we're doing that's working well and most importantly, what we can do to address our opportunities. We will be focusing our review on many areas such as customer data and perceptions and how we communicate with our customer including our promotional cadence, rebuilding our merchandising capabilities, execution both in-store and online, omnichannel strategies, our retail footprint, forecasting accuracy, shrink results, and, of course, inventory levels and replenishment capabilities."
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Nordstrom, Inc. shares were down 13.66% last Friday on trading volume roughly six times higher than usual at about 12.7 million shares traded. The high-end retailer saw its shares collapse after announcing that it had a 28 cent a share charge in its third quarter. The company reported a nonrecurring 28-cents-per-share charge after it discovered that some cardholders with delinquent accounts paid too much interest. “Excluding this estimated charge, which was not incorporated in the company’s prior outlook, earnings slightly exceeded the company’s expectations, reflecting continued top-line strength across its full-price and off-price business,” said the company in its earnings release. Profit was 39 cents while adjusted EPS was 67 cents. Instinet analyst Simeon Siegel was more concerned about the company's inventory and remarked, "After several quarters of expressing our fear that inventory levels across the department store channel were not as healthy as they seemed amid a growing diversion of excess product to off-price channels, 3Q reports are making the inventory situation harder to ignore."
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