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JC Penney general overview
Stronger Sales Boost
JC Penney Earnings
Tue Nov 16, 8:56 AM ET
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Department store operator J.C. Penney
Co. Inc.on Tuesday said third-quarter profit rose
86.3 percent, helped by stronger sales and fewer
markdowns. J.C. Penney also said its outlook for
the holiday season, a crucial selling time for retailers,
is positive.
Earnings rose to $149 million, or 50 cents per
share, in the quarter ended Oct. 30, from $80 million,
or 27 cents a share, a year earlier. The company
had forecast earnings of 47 cents to 49 cents a
share. Analysts' average forecast was 49 cents,
according to Reuters Estimates. "We are optimistic
the economic environment will continue to improve," Chairman
and Chief Executive Allen Questrom said in a statement. "Although
high energy prices remain a concern for our customer
segment, we are encouraged by recent trends."
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Shares of J.C. Penney climbed to $40.65 in premarket trading
from Monday's New York Stock Exchange close of $40.41.
Plano, Texas-based Penney forecast fourth-quarter earnings
from continuing operations of 95 cents to $1.10 per share
after one-time charges of 5 cents to 10 cents per share.
Analysts expect the company to earn $1.02 to $1.13 per
share this quarter, with a mean target of $1.07.
Sales for the third quarter rose 3 percent to $4.46 billion,
while sales at department stores open at least a year,
or same-store sales, rose 2.7 percent. Catalog and Internet
sales rose 3.6 percent.
The company said fourth-quarter sales, which will be reported
on a 13-week basis versus a 14-week basis last year, are
expected to fall low-single digits. Also, this year the
reporting of Thanksgiving will shift into November from
the December period last year, J.C. Penney said.
Penney Unwraps Ads for 'Challenging' Christmas November
18, 2004 By Richard Williamson
DALLAS JC Penney will rely on shorter TV spots for its
holiday advertising and expects no increase in ad spending
from last year, company executives said.
In unveiling the company's holiday advertising this week,
Penney executives said they expected sales to rise slightly
despite the flat ad budget.
The high cost of energy could put a damper on a Christmas
season that Ken Hicks, president and chief operating officer
of stores, described as "competitive and challenging."
Penney will open its holiday efforts
with 15-second spots for gift cards and will use
30-second spots for more general ads, the company
said.
The TV spots, created by Omnicom Group's DDB,
open with images of gold boxes wrapped with bows,
followed by a series of gift ideas.
Penney will spend more of its advertising dollars
during prime time on network and cable TV than
on morning shows and will target programming that
attracts a female audience, executives said. HGTV
network and broadcast shows West Wing, ER and The
Apprentice are among the programs Penney is favoring.
The retailer spent $337 million on advertising
in 2003 and $198 million through September 2004,
according to Nielsen Monitor-Plus.
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Penney's Hispanic ads are similar to those aimed at English-speaking
audiences.
Based in the Dallas suburb of Plano, Texas, Penney expects
the best sellers to be gift cards, home furnishings, synthetic
diamonds and " affordable luxury," such as cashmere
and a $99 tuxedo. Hicks said the company shipped holiday
merchandise to stores earlier this year and expects to
mark down slow-moving items more quickly.
Hicks has taken over operation of store, Internet and
catalog operations after the departure of Vanessa Castagna,
chairman and CEO of those units. Penney did not renew Castagna's
contract when it expired Nov. 14. She joined Penney in
1999.
Hicks, a member of the company's executive committee,
joined JC Penney in 2002 from Payless Shoe Source, where
he was president. He has also held key management, merchandising
and operational roles at Home Shopping Network, Foley's
Department Stores and May Merchandising Co. Toddler and infant department
overview
The mini girl’s area is a hip place to be
at JCP! Many of the key brands from 7-14 and even juniors
have begun to address this size range. Zana Di, Mudd, Levi’s
and Skechers are the big names besides kid friendly Osh
Kosh and Carters and the house brands Okie Dokie and Arizona.
JCP has done an impressive job catering to classically
inclined parents as well as to the new urban and latina
baby customer who may be looking for something a bit more
trend for her toddler. Take a look!
Opportunities in the infant's
and toddler's department
Many brands have taken
advantage of the current mini trend of grown up looks by offering grown
up brands in small sizes. The only downside to this is that some makers
are not yet sensitive enough to the particular needs of babies and
toddlers. A visit to a daycare would solve this problem in one hour!
Pants need to be easy on, easy off. Belts with fussy ties or D rings
will not be a big selling feature with parents of kids that go to
preschool! So, the trend poses a mandate for some and an opportunity
for others. Grown up brands need to look around at other mini makers
for clues on how to construct garment for the market and mini makers
need to look to the older brands to open up the field on new looks for
the small sizes!
A look into the department:
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