J.C. Penney reports Q2 sales down by 22.6 percent

J.C. Penney announced financial results for its fiscal second

quarter ended July 28, 2012. For the quarter, J.C. Penney reported an adjusted net loss of 81 million dollars or 0.37 dollars per share, excluding restructuring and management transition charges, inventory transition markdowns, gain on the redemption of the Simon REIT units, net of fees and non-cash qualified pension expense. On a GAAP basis, the company reported a net loss of 147 million dollars or 0.67 dollars per share.

Comparable store sales for the second quarter declined 21.7 percent. Total sales decreased 22.6 percent, which includes the effects of the company's exit from its outlet business. Online sales were 220 million dollars in the second quarter, decreasing 32.6 percent from last year.

Gross margin was 33.2 percent of sales, compared to 38.3 percent in the same period last year. Excluding the transitional markdowns, which lowered gross margin by 340 basis points, adjusted gross margin was 36.6 percent of sales.

The company ended the second quarter with approximately 888 million dollars in cash and cash equivalents on its balance sheet. Cash used in operations in the second quarter was 32 million dollars, 545 million dollars less than the first quarter of 2012.

The company expects to end the fiscal year with in excess of 1 billion dollars of cash on the balance sheet after spending 800 million dollars in capital expenditures to support the company's transformation efforts and paying off 230 million dollars of notes due in August 2012.

Over 110 years old, J.C. Penney provides a variety of apparel for the whole family, jewelry, housewares and home decor, and shoes. Its services also include gift registry, employment and credit card information. The Company runs its business through 1,100 J.C. Penny stores and an online store.