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Fashion & Home Retailer JCPenney’s Comp Sales Dip 4%

JCPenney

JCPenney

JCPenney, a fashion apparel and home with over 860 stores in United States and Puerto Rico, has unveiled financial results for fourth quarter and full-year ended February 2, 2019.

On a shifted basis, the company’s comparable sales decreased 4 percent, and 6 percent on an unshifted basis.

For the full-year 2018, comparable sales plunged 3.1 percent.

Net income of the retailer for the quarter was US $ 75 million and net loss for the full-year was US $ 255 million.

“We have taken meaningful steps to drive improvement in key businesses such as women’s apparel, active apparel, special sized apparel and fine jewelry,” said Jill Soltau, Chief Executive Officer of JCPenney.

Total net sales for the fourth quarter plummeted 9.5 percent to US $ 3.67 billion compared to US $ 4.05 billion in the corresponding fourth quarter last year.

Credit income was US $ 121 million for the fourth quarter as against US $ 84 million last year.

Jewelry, women’s apparel, children’s apparel and men’s apparel were the company’s top performing retain businesses during the quarter.

Net income for the fourth quarter was US $ 75 million, compared to net income of US $ 242 million in the same period last year.

Total net sales for fiscal 2018 decreased 7.1 percent to US $ 11.66 billion compared to US $ 12.55 billion for fiscal 2017. Comparable sales decreased 3.1 percent for the year.

The company’s net loss for 2018 was US $ 255 million compared to a net loss of US $ 118 million.

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The company has determined that it will close 18 full-line stores in 2019. In addition, the company will also close 9 ancillary home and furniture stores.

“As we forge a path to sustainable profitable growth, our decisions included eliminating non-core and low gross margin product categories, significantly reducing unproductive inventory and continuing the revitalization of our women’s apparel business. We know we need to move faster to reestablish the fundamentals of retail, build capabilities focused on satisfying our customers’ wants and needs and ensure that our digital and store operations operate seamlessly to provide an experience that wins with customers,” Soltau added.

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