Home / Knowledge / News / Apparel/Garments / Execution of Bridge Plan improves JCPenney cash flow metrics
Execution of Bridge Plan improves JCPenney cash flow metrics
21
Feb '09
J. C. Penney Company Inc reported 2008 fourth quarter operating income of $389 million and earnings from continuing operations of $0.94 per share, compared to recent guidance for earnings to be in a range of $0.90 to $0.93 per share. For the full year, operating income was $1,135 million, or 6.1 percent of sales, and earnings from continuing operations were $2.54 per share. Net income for this year's fourth quarter and full year, including the impact of discontinued operations, was $0.95 and $2.57 per share, respectively.

The Company maintained its strong financial condition in 2008, with the flexibility to continue to execute its Bridge Plan initiatives. The cash flow contribution generated by cash flow from operating activities less capital expenditures, net of proceeds from the sale of assets, and dividends was approximately $21 million.

This represents a $163 million improvement over 2007 results despite a significantly weaker operating environment in 2008. As of Jan. 31, 2009, the Company had cash and cash equivalents of $2.4 billion and long-term debt of $3.5 billion. Merchandise inventories totaled $3.3 billion and were about 13.5 percent lower than last year on a comparable store basis. Capital expenditures were approximately $970 million in 2008, moderately lower than the Company's $1.0 billion plan.

"Effectively executing our Bridge Plan enabled JCPenney to maintain a strong financial position and improve our cash flow metrics, despite the sharp deterioration of consumer spending over the course of 2008," said Myron E. (Mike) Ullman, III, chairman and chief executive officer.

"Throughout the year, we took steps to significantly reduce our inventories and operating expenses in order to withstand the impact of the economic conditions. At the same time, we stepped up the style we offer and focused on effectively communicating the newness, excitement and value in our merchandise, as well as engaging and enabling our Associates to provide a rewarding shopping experience to our customers. Looking ahead, we are dedicated to remaining one of the best capitalized retailers and continuing to show our customers why they should choose JCPenney above all others."

Operating Performance:
Total sales in the fourth quarter decreased 9.8 percent compared to last year, while comparable store sales decreased 10.8 percent. The strongest merchandise results were in women's apparel and family shoes and, geographically, the best performance was in the southwest region of the country. The weakest results were in fine jewelry and in the southeast region.

For the quarter, operating income as a percent of sales was 6.8 percent. Gross margin declined 160 basis points to 34.6 percent of sales reflecting pressure from a weak sales environment and increased promotional levels during the holiday selling season. SG&A expenses were well-managed in the quarter, and were essentially flat on a dollar basis to last year's fourth quarter.


Must ReadView All

Courtesy: Stone Island

Apparel/Garments | On 25th Jun 2018

Stone Island has mastered ingredient branding: Braind

Italian high-end men's apparel brand Stone Island tops the list of...

Courtesy: Tecnorama

Textiles | On 25th Jun 2018

'Tecnorama automatic dyeing system offers efficiency'

Italy based Tecnorama’s fully-automatic machinery for dispensing...

Courtesy: Pantone

Textiles | On 25th Jun 2018

Pantone unveils polyester standards

Pantone, provider of professional colour standards for the design...

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 ...

Top executives
Textile industry

Union budget 2018-19 will have positive impact on apparel industry

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Carolin Russ

Weko, Weitmann & Konrad GmbH & Co KG, based in south Germany, is...

Paolo Crespi

For.Tex is an Italy-based leading producer of dyes and thickeners, and is...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Suresh Patel
Sidwin Fabric

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

Ashok Desai
Bombay Textile Research Association

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

Marcel Alberts
Eurofibers

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

Sonam & Paras Modi
SVA

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

Wendell Rodricks
Wendell Rodricks

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

Judy Frater
Somaiya Kala Vidya

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

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

Leave your Comments


June 2018

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

news category


Related Categories:

Advanced Search