J.C. Penney Reports $31M Profit for Quarter
Catalog sales fell 17.7 percent. However, department stores and catalog gross margin increased 140 basis points as a percent of sales, primarily as a result of strong consumer response to back-to-school and fall merchandise offerings along with improved inventory productivity, the company said.
Net income for the period ended Oct. 27 totaled $31 million, compared with a $30 million loss last year.
Earnings from continuing operations, before one-time items,
amounted to 13 cents per share as opposed to a loss of 24 cents last year. Wall Street analysts' estimates ranged from 11 cents to 15 cents, with the consensus at 13 cents, according to Thomson Financial/First Call. The company had forecast earnings of 11 cents to 15 cents per share.
Penney reported fiscal third-quarter total sales of $7.73 billion last week, up 2.5 percent from $7.54 billion last year. Same-store sales improved 5.1 percent, while Eckerd drugstore's same-store sales rose 8.4 percent.
Department store operating profit increased 83 percent to $148 million.