J.C. Penney's Slashed Guidance Is Even Worse Than It Looks
Investors in struggling department store chain J.C. Penney (NYSE: JCP) received quite a shock last week. The company slashed its full-year earnings , a move that resulted from the clearing out of slow-moving women's and apparel inventory. This liquidation boosted sales and allowed the company to restock with better merchandise, but it decimated the bottom line.
J.C. Penney now expects to produce adjusted earnings between $0.02 and $0.08 per share in fiscal 2017. That's down from previous guidance of $0.40 to $0.65 per share. One silver lining: J.C. Penney will still be profitable this year on an adjusted basis. Unfortunately for investors, when the company uses the word "adjusted," they're not kidding.
Image source: Getty images.
Source: Fool.com
