Home / Knowledge / News / Textiles / Q1FY16 gross margin up 330bps at JC Penney
Q1FY16 gross margin up 330bps at JC Penney
19
May '15
For the first fiscal quarter ended May 2, 2015 gross margin at US apparel retailer JC Penney expanded 330 basis points to 36.4 per cent of sales, compared to 33.1 per cent in the same quarter of last fiscal.

JC Penney reported net sales of $2.86 billion in first quarter of fiscal 2016, up 2.14 per cent from the earlier fiscal first quarter, while same store sales increased 3.4 per cent for the period.

According to a JC Penney press release, women's apparel, men's and home were its top performing merchandise divisions in the quarter.

“Sephora inside JCPenney, which is now available in 515 locations, also continued its strong performance,” the clothing retailer added.

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

SG&A expenses for the reporting quarter were down $44 million to $965 million or 33.8 per cent of sales, representing a 220 basis point improvement from last fiscal’s first quarter.

“These savings were primarily driven by lower store controllable costs, advertising and improved credit income,” it observed.

Operating income for the first quarter of fiscal 2016 improved 70 per cent over the first quarter of fiscal 2015 to a loss of $75 million.

EBITDA improved by $168 million to $79 million, a 600 basis point or 189 per cent expansion from the same period last fiscal.

For the quarter under review, JC Penney incurred a net loss of $167 million or loss of $0.55 per share, a 52 per cent year on year improvement.

For fiscal 2016, the retailer now expects comparable store sales to increase between 4 to 5 per cent versus 3 to 5 per cent announced earlier.

It has now forecast gross margin to improve to between 100 and 150 basis points up from 50 and 100 basis points, it had announced previously.

JC Penney said it projects depreciation and amortisation at around $615 million, interest expense of approximately $415 million and capital expenditures of between $250 and $300 million for fiscal 2016.

CEO Myron Ullman said, "This year we are switching gears, going on the offensive to gain back share and grow our business profitably while executing our vision to become the preferred shopping choice.”

CEO-designate Marvin Ellison said, "The teams executed extremely well this quarter, resulting in significantly improved performance across the enterprise.”

“Based on our results to date, including a strong Easter and Mother's Day, we feel confident in raising our fiscal 2016 expectations for sales, gross margin and SG&A," Ellison too added. (AR)

Fibre2fashion News Desk - India


Must ReadView All

GMAC urges Cambodia to push fabric-forward rule in RCEP

Apparel/Garments | On 17th Oct 2017

GMAC urges Cambodia to push fabric-forward rule in RCEP

Representatives from the Garment Manufacturers Association of...

Alibaba to invest $15 billion in DAMO Academy for research

Textiles | On 17th Oct 2017

Alibaba to invest $15 billion in DAMO Academy for research

Alibaba will invest $15 billion over the next several years in its...

Pressure on  Indian textiles exporters to ease by Q3: ICRA

Textiles | On 17th Oct 2017

Pressure on Indian textiles exporters to ease by Q3: ICRA

Pressures on the profit and debt levels of textiles exporters is...

Interviews View All

Awen Delaval
Samatoa

'Natural fibres are appreciated for traditional authenticity'

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

Top executives
Textile & apparel bodies

The decision is transformational

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Harsh Shah

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

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Ashok Desai
Bombay Textile Research Association

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

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

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

October 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
77.3%
No
13.6%
Skip
9.1%

Total Votes: 66

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
60.6%
No
28.8%
Skip
10.6%

Total Votes: 66

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
84.8%
No
10.6%
Skip
4.5%

Total Votes: 66

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
74.2%
No
12.1%
Skip
13.6%

Total Votes: 66


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search