J. C. Penney Company, Inc. (NYSE:JCP) Q2 2018 Earnings Conference Call - Final Transcript

Aug 16, 2018 • 08:30 am ET

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J. C. Penney Company, Inc. (NYSE:JCP) Q2 2018 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen, and welcome to the Second Quarter 2018 J.C. Penney Company Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. (Operator Instructions) As a reminder, this conference call is being recorded.

I would now like to introduce your host for today's conference, Mr. Trent Kruse. Mr. Kruse, you may begin.

Executive
Trent Kruse

Thank you, Joel, and good morning, everyone. (Forward-Looking Cautionary Statements) For those listening after August 16, 2018, please note that this presentation will not be updated and it is possible that the information discussed will no longer be current. Also, supplemental reference slides are available on our Investor Relations website. While management will not be speaking directly to the slides, these slides are meant to facilitate your review of the company's results and to be used as a reference document following the call. Today, you will first hear from our CFO, Jeff Davis, who will provide a business update on our Q2 performance and ongoing strategies. I'll then rejoin the call to provide our Q2 financial overview and review our updated guidance. Following our prepared remarks, we look forward to taking your questions.

With that, I will now turn the call over to Jeff.

Executive
Jeff Davis

Thank you, Trent, and good morning, everyone. First and foremost, on behalf of the office of the CEO and our entire organization, I would like to thank you for your continued interest and support of JCPenney. I would also like to thank our nearly 100,000 associates across our Company for their hard work and dedication. As a team, we remain committed each and every day to undertake initiatives and execute strategies that will not only help our customers find what they love for less time, money, and effort; but also ensure we have the right plans in place to profitably grow and operate our business. Turning to today's agenda. I will provide a high level overview of our second quarter results as well as an update on third quarter and second half initiatives before turning the call back over to Trent, who will provide a more detailed overview of our results and provide updated full-year guidance. We will then open the lines for your questions.

Before I do that, I know many of you have questions about our CEO search and I hope the statement from our Chairman this morning addresses your question. As Ron said, the process is going well and the board has met with highly qualified candidates who have expressed a strong interest to become the next leader of JCPenney. The hiring of a new CEO is a top priority of the Board of Directors and they will continue to expedite the process in order to bring this search to a successful conclusion.

Now let's move to our second quarter results. We delivered a positive sales comp of 0.3% in the second quarter led by our stores channel. We had a strong