Skip to main content

Aggressive markdowns leave J.C. Penney Q2 profit flat


Plano, Texas -- J.C. Penney Co. reported Friday that net income for the quarter ended July 30 was flat at $14 million, citing aggressive markdowns for a lackluster performance that fell below Wall Street expectations.

Revenue dipped to $3.91 billion from $3.94 billion in the year-ago period. Same-store sales increased 1.5%.

According to J.C. Penney, its focus on the middle-to-lower-income shoppers creates a challenge, as those consumers face economic uncertainty heading into the back-to-school and holiday shopping seasons.

"The challenging economy continues to impact the moderate consumer," said Myron E. Ullman III, chairman and CEO in a statement. “"Nevertheless, we have made significant strides in implementing our merchandising growth initiatives.”

J.C. Penney opened 22 Sephora inside J.C. Penney boutiques in the quarter, bringing the concept total to 276.

This ad will auto-close in 10 seconds