Executive Summary

• JCPenney reported 3Q17 adjusted EPS of $(0.33), beating the $(0.41) consensus estimate but down from $(0.21) in the year-ago quarter. Revenues were $2.81 billion, down 1.8% year over year but beating the $2.76 billion consensus estimate.
• Comps increased by 1.7%, beating guidance of 0.6%–0.8%. Home, Sephora, footwear and handbags, women’s specialty, and salon were the top-performing divisions during the quarter.
• The company reaffirmed its 2017 adjusted EPS guidance of $0.02–$0.08 based on expected comps of (1)%–0%.