During the second quarter, JCPenney experienced a loss due to decreased revenues driven by lower traffic.
Based on a report from the retailer’s holding company, JCPenney Intermediate Holdings LLC, sales for the quarter ended August 3 decreased 8.9% to $1.5 billion. Sales in-store decreased 7.7%. Compared to operating income of $55 million in the same quarter last year, there was an operational loss of $14 million. In Q2 of previous year, net income was $36 million, while net loss was $33 million.
According to the firm, “the overall trend for store trips improved when compared to fiscal 2023, but traffic overall remained soft during the period.”
At the conclusion of the quarter, JCPenney had less than $500 million in outstanding long-term debt and around $1.7 billion in liquidity. Its credit line was free of outstanding debt.
Over 30,000 new credit customers and 830,00 new rewards members were added to the JCPenney Rewards program during the first quarter following its reintroduction at the end of the quarter. Store Net Promoter Scores increased by more than four points from the same time previous year.
At the conclusion of the quarter, the company operated 661 store locations.
