Home / Knowledge / News / Apparel/Garments / JC Penney posts third consecutive quarter of growth
JC Penney posts third consecutive quarter of growth
16
Aug '14
In the fiscal second quarter ending August 2, 2014, apparel retailer JC Penney said it reported a third consecutive quarter of growth, while gross margin improved 640 basis points from same quarter last year and 290 basis points sequentially from the first quarter of 2014.

For the second quarter of 2014, NYSE-listed JC Penney posted net sales of $2.80 billion compared to $2.66 billion in the second quarter of 2013.

In the same period, same store sales increased 6.0 percent and online sales stood at $249 million, up 16.7 percent versus the same period last year.

In the quarter under review, JC Penney said, women's and men's apparel and accessories, home and fine jewellery were top performing merchandise divisions.

It added that geographically, all regions delivered sales gains over the same period last year with the best performance in the southern and western regions of USA.

For the second quarter, gross margin clocked 36.0 percent of sales against 29.6 percent in the same quarter last year, representing a 640 basis point improvement.

Gross margin improved sequentially throughout the quarter and was positively impacted by improvement in its clearance sales performance, JC Penney said.

Inventory was $2.848 billion, down 9.7 percent compared to the same quarter last year.

SG&A expenses for the quarter were down $62 million to $964 million, or 34.4 percent of sales, representing a 410 basis point improvement from last year.

SG&A savings were primarily driven by lower store expenses, net advertising and corporate overhead as well as improved credit income, JC Penney informed.

Operating income for the quarter was a loss of $70 million, down from $325 million or 82 percent from comparable quarter of 2013.

EBITDA stood at $90 million, a $342 million improvement from the same period last year, while it incurred a net loss of $172 million or a negative $0.56 per share in the second quarter of 2014.

For the third fiscal quarter of 2014, JC Penney expects comparable store sales to rise in mid-single digits, while gross margin is expected to be in-line with second quarter of 2014.

Myron Ullman III, CEO said, "Our turnaround initiatives continue to produce improved financial results. In the second quarter, we gained additional market share while significantly increasing gross margin in a highly competitive promotional environment."

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 29th May 2017

Special package creates 7,50,000 jobs in garment sector

The special garment package of Rs 6,000 crore that was introduced by...

Md Siddiqur Rahman, president, BGMEA, addressing a press conference with other dignitaries. Courtesy: BGMEA

Apparel/Garments | On 29th May 2017

BGMEA asks govt for 5% incentive for 2 years in Budget

The Bangladesh Garment Manufacturers and Exporters Association...

Textiles | On 29th May 2017

Tintex, Bruckner bring new effects to knitted fabric

The textile company Tintex has joined hands with the system supplier...

Interviews View All

Darshan Mehta
Infinium Polychem

We are spending double digit figures on R&D

Karin Ekberg
Leadership & Sustainability

Sustainable models are beneficial for brands, retailers and manufacturers

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Pranav Mishra
Huemn

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

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

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:
May 2017

May 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