NEW YORK - J.C. Penney Co Inc (JCP).(N) efforts to remake itself as a string more fashion and to increase profitability by excretion low units paid in the first quarter and the retailer raised its profit for the year of the forecast.
Its shares fell 1.3% at noon after earlier hitting their level more than high since the collapse of the stock exchange 2008.
Penney in recent years has led to the land of the most exclusive lines, such as Liz Claiborne (LIZ).Clothing N) and lure younger shoppers with stores in its stores for brands such as Sephora cosmetics seller and the Spain chain of fast-mode Mango.
Penney also facilitated that fears its shoppers, considered as most vulnerable to the vagaries of the economy than those of Macy Inc. (M.N), would withdraw because the rise in the price of gasoline.
"It is an encouragement that they can weather the storms,"Morningstar analyst Paul Swinand stated to Reuters."" But Swinand said Penney has pressed a large part of the delivery, it will be of its initiatives.
Penney is also changing the way it manages inventory, closure of poor artists such as its catalog operations and small stores.
Penney, which operates 1,100 U.S. department stores, said net profit for the first quarter past 6.7% to $ 64 million, or 28 cents per share, from $ 60 million, or 25 cents per share, a year earlier. Which bat estimate average 24 cents per share analysts, according to Thomson Reuters I/B/E s.
Penney Executive Director Myron Ullman said that the benefits of efforts to reduce the expenses of the company will continue to "greatly accelerate profitability," Penney leader to return to historically high operating profit margins by 2014, according to the five-year plan of the chain announced last year.
Penney is Brig a profit of $5 per share in 2014, compared to $1.59 for the year ended in January.
A large part of the improvement for the benefit of the first quarter came from lower pension charges. On an adjusted basis, which strips out effect of that expense, net income fell to 33 cents per share of 40 cents.
Penney shares fell by 1.3%, or 52 cents, $37.93, but earlier in the session went as high as $41, which is the highest level since September 2008. The shares have more than doubled since their 52-week low of $19.44 last August.
IMPROVEMENT OF FORTUNES
Ullman told analysts on a conference call that was there was "no adversity Award" clients like Penney raised prices on its top articles of range because of the costs of cotton.
Lines such as Claiborne garments are exclusive offering Penney a greater possibility to set prices and protect its margins as it prepares for the later price increases this summer due to the increase of the costs of cotton.
As indicated earlier this month, sales of Penney stores open at least a year past 3.8% during the quarter, which ended April 30.
Total turnover increased by only 0.4% to $ 3.9 billion that out of the growth of the companies dampened catalogue.
Penney said that it expected sales and store to rise between 3% and 4% in the current quarter.
For the full year, Penney raised its earnings per share forecasts 15 cents to a range of 2,15 $ to $ 2.25, above Wall Street forecasts. Some of this increase arises from planned share repurchases.
Penney said that he expects savings as that $ 30 million in 2012, he leaves the company catalogue and for better management of supply chain generating savings of up to 15 million in 2012 and 30 million in 2013.
Optimistic forecasts of fact Penney echo those Inc. (Macy M.N) and Kohl Corp. (KSS).Shoppers N) who frequent stores last week, suggesting that the bourgeoisie are felt more confident.
Penney, whose largest shareholder is Pershing Square Capital Management the billionaire investor William Ackman, said of the dragged gross margin percentage by 0.9 point to 40.5% in the first quarter, due in part to free shipping offered to buyers online.
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