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

Apparel/Garments | On 21st Sep 2017

UK fashion exports £10.7 bn in 2016; highest till now

Exports of British fashion goods rose to £10.7 billion in 2016, the...

Apparel/Garments | On 21st Sep 2017

BFC announces partnership with Chinese firm JD.com

The British Fashion Council (BFC) has forged a new partnership...

Textiles | On 21st Sep 2017

Indonesia’s textile exports may reach $15 billion by 2019

Indonesia’s textile-related exports are projected to reach $15...

Interviews View All

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Kerem Durdag
Biovation II LLC

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

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

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

September 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


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