JCPenney closing underperforming store locations

24 Jan '11

4 min read

The Company will initiate these actions over the course of 2011 and expects that they will result in a positive impact to earnings in 2012, the first full year of implementation, of approximately $25 to $30 million, or approximately $0.07 per share. Additionally, there will be estimated one-time charges of approximately $30 million, or $0.08 per share, in the fourth quarter of fiscal 2010 and approximately $20 million, or $.05 per share during 2011 to reflect the transition.

"It is always difficult to make decisions that impact our associates, and we are committed to treating them fairly. As we continue to position our Company for the future, we determined that these steps are necessary to capitalize on the growth opportunities we see ahead while we ensure we are managing costs appropriately and continually enhancing the profitability of our operations," said Mr. Ullman.

When it announces its fourth quarter earnings for fiscal 2010, on Friday, Feb. 25th, the Company will provide an overview of the initiatives it will undertake in 2011 to capitalize on its growth opportunities in its core department store and online businesses.

J. C. Penney Company Inc

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