Executive Summary

• JCPenney reported 2Q17 EPS of $(0.20), missing the $(0.04) consensus estimate and down from $(0.18) in the year-ago quarter. Revenues were $2.96 billion, up 1.5% year over year and beating the $2.84 billion consensus estimate.
• Comps declined by 1.3% in the quarter. Strong products lines included home, fine jewelry, footwear and handbags, Sephora, and salon. Geographically, the Southwest and Southeast were the best-performing regions.
• The company reaffirmed its 2017 EPS guidance of $0.40–$0.65 based on expected comps of (1)%–1%.