J.C. Penney is scheduled to report fourth-quarter earnings before the bell on Friday.
Here’s what analysts are expecting, based on a survey of analysts by Thomson Reuters:
* Earnings per share: 47 cents
* Revenue: $4.05 billion
* Same-store sales: an increase of 2.9 percent
The Plano, Texas-based department store chain’s ongoing turnaround efforts include liquidating excess apparel inventory, closing unprofitable stores and growing its private-label lines. Last quarter, those investments appeared to be paying off, as Penney’s same-store sales climbed nearly 2 percent ahead of the holidays.
Penney has seen consistent growth in its beauty department, which includes hair salons, Sephora makeup stores, and fine jewelry. It’s also managed to gain market share of appliances as Sears Holdings closes more stores.
To be sure, the company still has other obstacles to overcome, as mall-based retailers must adjust to sales moving online. Penney recently announced it would be closing one of its distribution centers, eliminating more than 600 jobs. The company has said it will close eight stores in total in 2018, compared with more than 100 closures the year prior.
A report circulated earlier this week that Penney would be readjusting its workforce, eliminating some full-time positions in stores, to cut costs. Another report said Penney was slashing staff at its corporate headquarters in Texas.
“JCPenney is implementing a store staffing model to simplify processes, improve productivity and manage expenses,” a spokesman told CNBC about the changes. The company declined to comment on how many people would be impacted by the cuts at its corporate offices.
J.C. Penney shares have climbed a little more than 20 percent so far this year.
This is a developing story. Please check back for updates.
