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

Fashion | On 26th Jul 2016

Finally, Myntra buys Jabong

Putting an end to months of speculation, online fashion e-retailer...

Apparel/Garments | On 26th Jul 2016

British clothing retailers face Brexit double whammy

With online rivals already giving them a hard time, Britain's major...

Courtesy: Chanel

Fashion | On 26th Jul 2016

Chanel acquires 4 silk companies to firm up supplies

Continuing its trend to secure access to high-end raw materials,...

Interviews View All

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Kerem Durdag
Biovation II LLC

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

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Steve Cole
Xerium Technologies

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

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

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
june 2016

F2F Magazine

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

SUBSCRIBE


Browse Our Archives

GO


Advanced Search