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JCPenney reports Q1 financial results

15 May '08

3 min read

J. C. Penney Company Inc reported earnings per share from continuing operations of $0.54 for the first quarter ended May 3, 2008, compared to $1.04 in last year's first quarter. Net income for the quarter decreased 49.6 percent to $120 million.

"Our financial performance in the first quarter was clearly impacted by the weakened consumer environment," said Myron E. (Mike) Ullman III, chairman and chief executive officer of JCPenney. "We are fortunate in this economic climate to have strong financial flexibility, which enables us to continue to deliver a highly compelling shopping experience.

Looking ahead, we will continue to take the necessary actions to align our business plans with the expectation that conditions will remain difficult for the remainder of 2008. Accordingly, inventory will be managed through appropriate pricing actions on existing merchandise and by reducing our future merchandise commitments to better balance our inventory position with expected sales levels."

At its April Analyst Meeting, management provided details of its Bridge Plan designed to allow the Company to successfully navigate through the current environment and position itself to benefit when conditions become more favorable. Including a reduced store opening and renovation plan and rigorous control over operating expenses, the Bridge Plan is focused on balancing the Company's long-term growth opportunities with the near-term pressures of the consumer environment.

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