Home / Knowledge / News / Apparel/Garments / Sales plunge 24.8% at JC Penney in FY'13
Sales plunge 24.8% at JC Penney in FY'13
28
Feb '13
J. C. Penney Company, Inc. announced financial results for its fiscal fourth quarter and full year ended February 2, 2013.  For the quarter, jcpenney reported a net loss of $552 million or $2.51 per share.  Excluding restructuring and management transition charges and non-cash primary pension plan expense, the Company's adjusted net loss for the quarter was $427 million or $1.95 per share. 

For the year, jcpenney reported a net loss of $985 million or $4.49 per share.  Excluding markdowns related to the alignment of inventory with the Company's new strategy, restructuring and management transition charges, non-cash primary pension plan expense and the net gain on the sale or redemption of non-operating assets, the Company's adjusted net loss for the year was $766 million or $3.49 per share.

Fiscal 2012 Results:

Total sales for the fiscal year, which included $163 million of sales in the 53rd week, decreased 24.8 percent to $12.985 billion. Comparable store sales, which exclude the 53rd week, declined 25.2 percent.  Internet sales through jcp.com were $1.020 billion, decreasing 33.0 percent from last year.

Gross margin was 31.3 percent of sales, compared to 36.0 percent last year.  Gross margin was impacted by lower than expected sales, a higher level of clearance merchandise sales and markdowns taken during the year to clear discontinued inventory in preparation for new product and brands being introduced as part of the transformation.

The Company's SG&A expenses decreased $603 million compared to last year.

As noted above, the Company incurred a charge of $148 million, or $0.41 per share, related to lump-sum settlements from its primary pension plan, elected by participants who have separated from the Company.

Additionally, the Company realized net gains on the sale or redemption of non-operating assets of $397 million and recognized charges totaling approximately $86 million, or $0.24 per share, related to the impairment and write-off of certain store and store-related assets.

For the year, the Company incurred $298 million, or $0.83 per share, in restructuring and management transition charges.

These charges comprised the following:
-Home office and stores $109 million, or $0.30 per share;
- Store fixtures $78 million, or $0.22 per share;
- Management transition $41 million, or $0.12 per share;
- Software and systems $36 million, or $0.10 per share;
- Supply chain $19 million, or $0.05 per share;
- Other $15 million, or $0.04 per share.

Despite the impacts of reduced sales and gross margin and restructuring charges associated with the Company's transformation throughout 2012, full year operating cash flow was a use of $10 million.  This takes into account the non-cash nature of a number of restructuring charges, the positive impacts of reduced expenses, reduction in inventory levels, specific steps taken to improve overall working capital, including the realignment of vendor payment schedules of $129 million and a one-time deferral of select vendor payments in the fourth quarter of $85 million. 


Must ReadView All

Courtesy: Raymond

Apparel/Garments | On 28th Jun 2017

Raymond plans to invest Rs 1,400 crore in Amravati plant

Raymond, Indian textiles and apparel major, has decided to invest Rs...

Textiles | On 28th Jun 2017

GST and textiles industry: Analysis and opinion

The Goods and Services Tax (GST) is at long last all set to be rolled ...

Textiles | On 28th Jun 2017

India probing dumping of polyester yarn by China

Indian government is probing anti-dumping allegations against a...

Interviews View All

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Ajay Ghariwala
Luthra Group

We are ready to adopt or follow every opportunity

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
July 2017

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search