Home / Knowledge / News / Apparel/Garments / Apparel retailer JC Penney cuts Q2FY16 operating loss
Apparel retailer JC Penney cuts Q2FY16 operating loss
Aug '15
For the second quarter ended August 1, 2015, apparel retailer JC Penney reduced operating loss 46 per cent year over year to $38 million.

In a press release, the retailer said it also improved its EBITDA in the second quarter of fiscal 2016 by $25 million from a fiscal ago period to $115 million.

On an adjusted basis, EBITDA expanded by $95 million to $134 million and also cut its net loss 20 per cent over the prior fiscal to $138 million or $0.45 per share.

The company reported net sales of $2.88 billion in the reporting quarter compared to $2.80 billion in the second quarter of 2014, while same store sales increased 4.1 per cent for the period.

For the quarter, Men's, Home, Sephora and Fine Jewelry were the company's top performing merchandise divisions.

“In particular, Sephora continued its strong performance this quarter with a double digit increase in comparable store sales,” it added.

Geographically, all regions experienced sales growth when compared to the same period last fiscal with the best performance coming from the western and central regions of the US.

For the quarter under review, gross margin improved 100 basis points to 37.0 per cent of sales, driven by improvements in its clearance and promotional selling margins.

SG&A expenses for the reporting period were down $63 million year on year to $901 million or 31.3 per cent of sales, representing a 310 basis point improvement from last year.

According to JC Penney, these savings were primarily driven by lower store controllable costs, advertising and improved private label credit card revenue.

CEO Marvin Ellison said, "We are pleased to report another quarter of improved performance thanks to the commitment and diligence of the JC Penney team.”

“Although we have significant work to do as a company to regain our status as a world-class retailer, I am pleased with the resilience and the efforts of our associates,” he too added.

The company improved its SG&A and EBITDA guidance and reiterated its remaining 2015 full-year guidance.

It expects comparable store sales to rise between 4 and 5 per cent, while gross margin is projected to improve 100 to 150 basis points.

SG&A is now anticipated to decrease approximately $120 million compared to the previous expectation of a $100 million decline.

It now projects EBITDA to amount to around $620 million for the full fiscal as against the prior expectation of $600 million. (AR)

Fibre2Fashion News Desk – India

Must ReadView All

Apparel/Garments | On 18th Jan 2017

Government considering 100% FDI in single brand retail

The Government of India is looking at allowing 100 per cent foreign...

Courtesy: Walmart

Apparel/Garments | On 18th Jan 2017

Walmart to create 34,000 new jobs in the US

The world’s biggest retailer and also the biggest US private sector...

Courtesy: UN Department of Public Information

Textiles | On 18th Jan 2017

World economy expanded by just 2.2% in 2016: UN

The world economy expanded by just 2.2 per cent in 2016, the slowest...

Interviews View All

Rashi Menda

Every fifth sale we make on Zapyle is a repeat purchase

Vidhyaa Shankar. S
A Ganapathi Chettiar

'The usage of knits is getting into the boundaries of woven fabrics'

Frank Gossmann
Rotorcraft AG

‘RT3 motto is: Do not check millimetres, check colours.’

Paolo Ocleppo
Sandvik Hyperion

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

Marcel Alberts

Coating at a fibre level is a practice not usually seen in the...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Sonam & Paras Modi

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

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


Letter To Editor

(Max. 8000 char.)

Search Companies

January 2017

January 2017

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


Browse Our Archives


Subscribe today and get the latest News update in your mail box.
Advanced Search