American retailer JCPenney launch of “the first affordable 100 per cent cotton wrinkle-free mens’s shirt, news, UK

JC Penney profits surge

US retailer JC Penney Co Inc. has posted a 65.5 percent increase in profits for the fourth quarter, surpassing Wall Street expectations. Earnings for the full-year more than doubled compared with last year.“The team hit every internal metric. They are all expecting bonuses,” chairman and chief executive Myron Ullman 3 rd told WWD in a telephone interview. He added that customer response to the company's planning and merchandise had been positive and pointed out that the quarterly results reflected the company's ability to offer lifestyle merchandise at “smart prices”. Ullman also said that shoppers had responded well to the retailer's bolder marketing for some of its brands, resulting in better sell-throughs.

Net income for the quarter, ended 28 January, rose to $551 million (£316 million) from $333 million last year. Sales climbed 4.2 percent to $6.2 billion, while same-store sales rose 2.6 percent. Direct sales in the catalogue and Internet business climbed 3.7 percent, with sales through the retailer's website gaining 22 percent. Meanwhile, gross margin increased 3.9 percent to $2.29 billion.

Last year, JC Penney opened 18 new stores, more than it had done in eight years.

Profits for the full year rose to $1.09 billion, up from $524 million the year before. Sales climbed 3.8 percent to $18.78 billion.

During a conference call with Wall Street analysts, president and chief merchandising officer Ken Hicks said strong performances came from family shoes, women's accessories, children's and fine jewellery.

“While women's apparel was a challenging business this fall across the entire industry, our planning allocation processes and controls enabled us to effectively manage our inventory ending the season on our stock plan in women's apparel,” he said.

Analysts reacted positively to the news. “We are encouraged by JC Penney's efforts to adapt to consumers' changing preferences and reposition itself within the retail landscape,” Lehman Brothers analyst Robert Drbul wrote in a research note.

Oppenheimer & Co analyst Bernard Sosnick wrote in his research note: “In our view, JC Penney seems capable of continuing to beat expectations by a wide margin. We expect JCP shares to move into the $60 to $70 range.”

www.jcp.com
20 February 2006

JC Penney catalog sales jump

USA based online retailer J. C. Penney Company Inc announced the comparable department store sales increased 3.5 percent for the four weeks ended May 28, 2005. Sales reflected a continuation of recent trends and an improvement over previous guidance. Direct (catalog/Internet) sales increased 7.8 percent, in line with previous guidance.

The Internet component of sales continued to achieve strong growth, increasing approximately 35 percent for the month. In last year's May period, comparable department store sales increased 9.1 percent, Direct (catalog/Internet) sales were flat, and Internet sales increased 35 percent.

For the month of June, the company expects comparable department store sales to be up low-single digits and Direct (catalog/Internet) sales to be up low- to mid-single digits. In last year's June period, comparable department store sales increased 4.8 percent and Direct (catalog/Internet) sales declined 3.4 percent.

www.jcpenney.com
10 June 2005

JCPenney produces first cotton wrinkle-free shirt

American retailer JCPenney has beaten the competition with its launch of “the first affordable 100 per cent cotton wrinkle-free mens’s shirt. Over two years of teamwork between JCPenney's product development team, buying team and the company's major shirt suppliers has resulted in the new Stafford Executive brand shirt. The shirt is making its debut in 600 JCPenney department stores this month.

JCPenny began working with wrinkle free technology over ten uears ago, but a wrinkle-free cotton shirt has been the biggest hurdle. The wrinkle-free treatment tends to weaken the fabric. The heavier fabric used in pants is able to hold up well, but producing a wrinkle-free shirt from lighter-weight cotton that can stand up to normal washing and wearing was very difficult. Now JCPenny has developed the treatment technique to the point where it can deliver a cotton dress shirt that sheds wrinkles and stands up to everyday wear and care.

JCPenney claims to sell more wrinkle-free pants than any other retailer, including styles from Dockers, Haggar, and St John's Bay. The Stafford brand cotton-polyester wrinkle-free shirt, first offered in 1993, is America's best-selling dress shirt.