J.C. Penney narrows 4th-quarter and full-year profit forecasts after posting December sales

J.C. Penney narrows 4Q profit outlook

PLANO, Texas — J.C. Penney Co. Inc. narrowed its fourth-quarter and full-year guidance Thursday after reporting slightly better-than-expected December sales.

However, the new outlook falls below analysts’ average estimates. Shares slid $1.41, or 5.1 percent, to $26.21 in morning trading.

The department store retailer said it now expects to earn between 77 cents and 82 cents per share in the fourth quarter and post a full-year profit between $1 and $1.05 per share. In November, J.C. Penney executives said the company would likely earn between 70 cents and 85 cents for the three-month period and 93 cents to $1.08 per share for the full year.

Analysts have forecast quarterly profit of 83 cents per share and full-year earnings of $1.06 per share, on average.

The retailer said its sales at stores open at least a year fell 3.8 percent in December, but the decrease was slightly less than the 4 percent drop that analysts had expected. January sales at stores open at least a year are expected to drop 5 percent to 8 percent, compared with a 16.4 percent decline in the year-ago period.