J. C. Penny Shares Fell With Marginal Increase In Quarterly Sales

J.C. Penney Company, Inc. (NYSE:JCP) shares are currently trading at $31.78, a drop of 1.37% from previous closing price of $32.22. The company's shares have 52-week trading range of $34.50 – $19.42. The shares are trading at volume of 1.80 million shares. The market capitalization of the company is $7.51 billion. The 1-year target estimate is $31.00. Today, the company announced its third quarter financial results 2010, with net revenues at $4.18 billion, an increase of 0.2% as compared to $4.17 billion in the previous quarter. The comparable store sales were positive for the third consecutive quarter, increasing 1.9% over last year. The internet sales through jcp.com were $361 million in the third quarter, increasing 3% over last year as the company's online growth initiatives begin to take hold. The strongest merchandise results were in shoes and men's apparel, and geographically, the best performances were in the southeast and southwest regions of the country. The total sales for the quarter were impacted by the company's discontinuation of its Big Book catalogs this year. The net income reported was $44 million, or $0.19 per share as compared to $0.11 per share in previous year. These results reflect the company's focus on growing top-line sales in stores and online, while managing costs and expenses. In the quarter, the company launched several merchandise initiatives including Liz Claiborne, MNG by Mango and Call it Spring by The ALDO Group, all exclusive to JCPenney. The company also opened 16 Sephora inside JCPenney beauty boutiques and will end the year with 231 locations. The company expects comparable store sales to increase 3 to 4% in the fourth quarter. The total sales are expected to increase approximately 150 basis points less than comparable store sales. The EPS is expected to be in the range of $0.90 to $1.00 per share. For the full year, the company continues to expect comparable store sales to increase low single digits and earnings to be in the range of $1.40 to $1.50 per share. JCPenney is a retailer operating 1,108 JCPenney department stores in 49 states and Puerto Rico as of January 30, 2010. Its business consists of selling merchandise and services to consumers through its department stores and Direct (Internet/catalog) channels. JCPenney sells family apparel and footwear, accessories, fine and fashion jewelry, beauty products through Sephora inside JCPenney and home furnishings. Disclaimer: The assembled information distributed by epicstockpicks.com is for information purposes only, and is neither a solicitation to buy nor an offer to sell securities. Epicstockpicks.com does expect that investors will buy and sell securities based on information assembled and presented herein. EpicStockPicks.com will not be responsible in any way for or accept any liability for any losses arising from an investor's reliance on or use of information obtained from our website or emails. PLEASE always do your own due diligence, and consult your financial advisor.
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