Please fill in your details to download the Table of Contents of this report for free. We also do customization of these reports so you can write to us at email@example.com in case you need any other additional information.
The Company also reported on its initiatives to fix and stabilize the business and return to profitable growth.
Financial results for the quarter include:
jcpenney reported net sales of $2.66 billion compared to $3.02 billion in the fiscal second quarter of 2012. Comparable store sales declined 11.9% in the quarter, and were negatively impacted by the Company's failed prior merchandising and promotional strategies, which resulted in unusually high markdowns and clearance levels in the second quarter.
In addition, the lengthy renovation and disappointing re-merchandising of its Home departments adversely impacted the Company's comparable store sales during the second quarter. Overall, the performance of the Company's Home division had a 240 basis point impact on its comparable store sales for the quarter.
Despite these challenges, comparable store sales for the quarter improved sequentially by 470 basis points when compared to the first quarter of fiscal 2013. In addition, sales results improved sequentially each month within the second quarter, a trend the Company expects to continue through the back half of the year.
Gross margin was 29.6 percent of sales, compared to 33.2 percent in the same period last year. Gross margin was negatively impacted by lower than expected sales, and a higher level of clearance merchandise sales during the quarter including merchandise carried over from the first part of the year.
During the quarter, the Company enhanced its liquidity by entering into a $2.25 billion senior secured term loan facility. In addition, the Company paid $355 million to complete a cash tender offer and consent solicitation with respect to substantially all of its outstanding 7 1/8% Debentures due 2023. In doing so, the Company also recognized a loss on extinguishment of debt of $114 million reducing earnings per share by $0.52.
Second quarter results reflect an effective tax rate of 3.0% compared to 36.4% in the previous quarter. The lower tax benefit is primarily driven by a charge of approximately $218 million to record an increase to the tax valuation allowance for deferred tax assets that negatively impacted earnings in the quarter by approximately $0.99 per share.
Click here to read full results
| On 28th Sep 2020
The potential loss of tariff advantages offered by the European Union ...
| On 28th Sep 2020
Following a 66 per cent spike in daily online sales in May, when most ...
| On 28th Sep 2020
An independent review launched by Boohoo in July has “has identified...
‘The intimatewear category in India is slowly becoming trend-sensitive.’
Tech in fashion industry has hit acceleration button
Money never disappears-it just finds new opportunities
The mission of Swiss company Datacolor is to empower its customers to make ...
The JD Institute of Fashion Technology is the educational division of JD...
The Shradhdha Group of companies was established in 2010 and is based out...
Larry L Kinn
Larry L Kinn, Senior Vice President - Operations Americas of Suominen...
Investkonsult Sweden AB
Investkonsult Sweden AB are consultants in the nonwoven and absorbent...
University of New South Wales
<div><div><div><div><b>Melissa Tate</b>, a well-known scientist currently...
Sarah Denise Cordery
Sarah Denise Studio
Manchester, England-based Sarah Denise Studio provides relevant fashion...
Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...
She grew up in the walled city of Old Delhi, completed her studies, and...
Letter to Editor
Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.
Subscribe today and get the latest information on Textiles, Fashion, Apparel.