Losses at JC Penney double, sales slide, as do shares

PLANO, Texas (AP) — Losses at J.C Penney doubled in the first quarter and sales at established stores fell again, capping a terrible week for retailers.

Don't be fooled by the bottom line beat; it was entirely due to a real estate gain that we had not included in our forecast, wrote Citi analyst Paul Lejuez.

Analysts polled by Zacks Investment Research expected a loss of 22 cents per share, though those estimates were revisited by analysts due to asset gains.

Industry analysts watch that figure closely as a signal of a retailer's health because it excludes the volatility of stores that were recently opened or closed.

Data released Friday by the U.S. Commerce Department shows that Americans stepped up spending in April, but that money went largely to auto dealers, online stores or places like hardware stores.

J.C. Penney is also trying to modernize, equipping its workers with mobile devices to help online shoppers pick up orders in the store.