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JCPenney to improve consumer environment during 2008
22 Feb '08
3 min read
This approach will be seen in our new American Living concept and other launches we have planned over the course of the year. At the same time, we are taking prudent actions to grow our competitive market share with 36 new store openings under a moderated capital expenditure plan while remaining vigilant about managing both SG&A and inventory levels."
Operating Performance:
Total sales in the fourth quarter decreased 4.1 percent compared to last year's 14-week period, while comparable store sales decreased 2.3 percent. The strongest merchandise results were in women's and children's apparel, and, geographically, the best performance was in the northwest region of the country.
Internet sales through jcp.com continue to represent our fastest growing channel increasing 13.7 percent on a 13-week basis. The weakest performances were in fine jewelry and big-ticket home categories and in the southeast region of the country.
For the quarter, operating income as a percent of sales improved 10 basis points to 11.4 percent. Gross margin declined 180 basis points to 36.2 percent of sales and reflected pressure from a weak sales environment that led to increased promotional levels and in-season clearance activities.
SG&A expenses were well-managed in the quarter, decreasing 11.3 percent from last year's 14-week fourth quarter. As a percent of sales, total operating expenses improved 190 basis points to 24.8 percent of sales in the fourth quarter and benefited primarily from lower salary and related costs.
Interest expense for the quarter was $43 million, which was in line with initial expectations, and the effective tax rate was 37.2 percent.
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Operating Performance:
Total sales in the fourth quarter decreased 4.1 percent compared to last year's 14-week period, while comparable store sales decreased 2.3 percent. The strongest merchandise results were in women's and children's apparel, and, geographically, the best performance was in the northwest region of the country.
Internet sales through jcp.com continue to represent our fastest growing channel increasing 13.7 percent on a 13-week basis. The weakest performances were in fine jewelry and big-ticket home categories and in the southeast region of the country.
For the quarter, operating income as a percent of sales improved 10 basis points to 11.4 percent. Gross margin declined 180 basis points to 36.2 percent of sales and reflected pressure from a weak sales environment that led to increased promotional levels and in-season clearance activities.
SG&A expenses were well-managed in the quarter, decreasing 11.3 percent from last year's 14-week fourth quarter. As a percent of sales, total operating expenses improved 190 basis points to 24.8 percent of sales in the fourth quarter and benefited primarily from lower salary and related costs.
Interest expense for the quarter was $43 million, which was in line with initial expectations, and the effective tax rate was 37.2 percent.
Click here to view more:
J. C. Penney Company Inc
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