JCPenney expects tough year
February 21, 2008,
Plano, Texas – Despite a smaller than expected drop in quarterly profits during the fourth quarter, JCPenney execs today told analysts they expect 2008 to be challenging year.
Gross margin as a percentage of sales are expected to decline and expenses to climb both in the first quarter and for the full year, they said.
Home continues to show sluggish performance both on-line and in-store – especially textiles and furniture, executives said. However, in the first few selling days of the new American Living line, home is generating some interest, with window showing particular promise.
For the quarter ended Feb. 2, JCP recorded a profit of $430 million, or $1.93 per share, down 10% from the year-ago period. The result was helped along in part cutting pension expenses and executive bonuses, which shaved 11.3% off selling, general and administrative expenses.
Sales declined 4.1% to $6.4 billion, with comps down 2.3%.
For the new fiscal year, JCPenney expects earnings per share of $3.75 to $4.00, with EPS of 75-80 cents in the first quarter. Sales are forecast to increase slightly during the first quarter, with an increase in the low single digits for the full year. Comps are expected to decrease in the low-single digits for both the first quarter and full year.
Related Content By Author
Live From New York: Fashion Comes Across the Pond
Home & Textiles Today eDaily
Most Viewed Articles
See the September 2017 issue of Home & Textiles Today. In this issue, we look at the Attack of the Killer Third Tier: Monster off-pricers are climbing to the top of the food chain, plus New Products: 40 pages of new products debuting at the New York Home Fashions Market; Home Stores: TJX unveils first U.S. HomeSense store; Clicks to Bricks: Boll & Branch moves from digital to physical retailing; and much more...