14 May Penney Narrows 1Q Loss
J. C. Penney Company, Inc. reported net sales of $2.86 billion compared to $2.80 billion in the first quarter of 2014. Same store sales increased 3.4 percent for the period.
Myron E. (Mike) Ullman, III, chief executive officer said, “We are pleased with the company`s solid performance this quarter across all key metrics including sales, gross margin and EBITDA. 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 for Middle America. I would like to thank our team of 114,000 associates for their hard work and warrior spirit that helped us deliver these results. It is their passion to win and to serve the customer that sets JCPenney apart from the competition.”
Marvin Ellison, president and CEO-designee, said, “The teams executed extremely well this quarter, resulting in significantly improved performance across the enterprise. It is clear that our strategic initiatives are working to drive profitable sales growth. Our exceptional customer experience, when combined with our strength in private brands, national brands and points of differentiation like Sephora inside JCPenney and the Disney Collection, give us confidence in our ability to earn customer loyalty and deliver on our long term goals. In fact, based on our results to date, including a strong Easter and Mother`s Day, we feel confident in raising our 2015 expectations for sales, gross margin and SG&A.”
For the quarter, Women`s apparel, Men`s and Home were the company`s top performing merchandise divisions. Sephora inside JCPenney, which is now available in 515 locations, also continued its strong performance. 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 country.
For the first quarter, gross margin improved 330 basis points to 36.4 percent of sales, compared to 33.1 percent in the same quarter last year.
SG&A expenses for the quarter were down $44 million to $965 million or 33.8 percent of sales, representing a 220 basis point improvement from last year. These savings were primarily driven by lower store controllable costs, advertising and improved credit income.
Operating income for the quarter improved 70 percent over last year to a loss of $75 million. EBITDA improved by $168 million to $79 million, a 600 basis point or 189 percent improvement from the same period last year. For the first quarter, the company incurred a net loss of $167 million or 55 cents per share, a 52 percent improvement.
J. C. Penney Company, Inc. reported net sales of $2.86 billion compared to $2.80 billion in the first quarter of 2014. Same store sales increased 3.4 percent for the period.J. C. Penney Company, Inc. reported net sales of $2.86 billion compared to $2.80 billion in the first quarter of 2014. Same store sales increased 3.4 percent for the period.J. C. Penney Company, Inc. reported net sales of $2.86 billion compared to $2.80 billion in the first quarter of 2014. Same store sales increased 3.4 percent for the period.J. C. Penney Company, Inc. reported net sales of $2.86 billion compared to $2.80 billion in the first quarter of 2014. Same store sales increased 3.4 percent for the period.J. C. Penney Company, Inc. reported net sales of $2.86 billion compared to $2.80 billion in the first quarter of 2014. Same store sales increased 3.4 percent for the period.J. C. Penney Company, Inc. reported net sales of $2.86 billion compared to $2.80 billion in the first quarter of 2014. Same store sales increased 3.4 percent for the period.J. C. Penney Company, Inc. reported net sales of $2.86 billion compared to $2.80 billion in the first quarter of 2014. Same store sales increased 3.4 percent for the period.
2015 Outlook
The company increased its 2015 full-year guidance as follows:
- Comparable store sales: now expected to increase 4 percent to 5 percent versus 3 percent to 5 percent previously;
- Gross margin: now expected to improve 100 to 150 basis points up from 50 to 100 basis points previously;
- SG&A: now expected to decrease $100 million up from $50 to $100 million previously;
- EBITDA: approximately $600 million
- Primary pension plan expense: approximately $19 million;
- Depreciation and amortization: approximately $615 million;
- Interest expense: approximately $415 million
- Capital Expenditures: $250 to $300 million; and
- Free cash flow: expected to be breakeven.