JCP lowered its same-store sales forecast for the key holiday season
Retail earnings are rolling in this week, with J C Penney Company Inc (NYSE:JCP) coming in as one of the latest names to unveil its results. While the department store reported a slimmer-than-expected first-quarter loss of 52 cents, revenue of $2.65 billion fell short. Plus, the retailer said same-store sales plunged 5.4% over the three-month period, and slashed its comparable sales forecast for the upcoming holiday season.
In reaction, JCP stock is down 9.8% to trade at $1.10, after hitting a record low of $1.09 out of gate. This negative earnings reaction just echoes J C Penney's longer-term fundamental and technical woes, with the retail shares down 61.4% year-to-date heading into today's trading, and closing at a then-record low of $1.22 yesterday.
Not surprisingly, there's plenty of skepticism priced into the troubled stock. All 16 analysts in coverage maintain a "hold" or worse, and the average 12-month price target sits at a slim $1.58.
J C Penney is heavily shorted, too, with bearish bettors in control of almost half of the stock's available float. As JCP shares continue to tumble, these short sellers are unlikely to abandon their winning bets.