J.C. Penney 1 q profit rises 7 pct. raises outlook (AP)

NEW YORK - J.C. Penney stores closing two-pronged strategy making poor and other companies while focusing more on goods exclusive is paying off the coast.

First quarter net income increased by almost 7%, and chain store raised its guidance result Monday.

Increases suggest that middle class of Penney customers are always willing and able to spend as they deal with rising prices for gasoline and groceries, then even that on some clothing prices rises as well.

Penney has cut costs by closing some stores, points of sale and a call centre. He is also a recap of the closure of its catalog business.

The Monday company reported a net income of $ 64 million, or 28 cents per share, for the three months ended April 30. That compares to $ 60 million, or 25 cents per share, in the same period last year.

Revenue edged up to 3.94 billion from $3.93 billion. Penney revenue at stores open at least a year rose 3.8%, fuelled by exclusive brands such as Liz Claiborne, Worthington and MNG by Mango. The gauge is a key indicator of a retailer's health.

Analysts had predicted that earnings of 26 cents on revenue of 3.94 billion, according to FactSet.

CEO Myron e. Ullman III promised savings more, including trimming of the costs of marketing and management of inventory more effectively. The company expects to save about $ 25 million to $ 30 million in 2013, with approximately half of that in 2012.

The company expects $ 5 per share in earnings for 2014.

The beating came after two views shareholders, William Ackman, and Steven Roth, President of Vornado Realty Trust, joins the Board of Directors in January. The Ackman of Pershing Square management and Vornado Realty Trust has taken large stakes in the company of end of last year.

Like many stores, J.C. Penney adding goods exclusive. Last year, he became the only retailer U.S. sale Liz Claiborne and Claiborne women's clothing, although the mark designed by Isaac Mizrahi Liz Claiborne New York went to QVC. He is also the only store selling MNG by Mango, a string of European clothing.

In the first quarter, it added 23 Sephora stores within Penney stores, bringing the total to 254.

Penney also opened a new unit dedicated for new sources of income. This initiative of growth, the company opened the first 10 stores of Foundry Big & Tall Supply co. -six in the Dallas-Fort Worth region and four in Kansas City. The Foundry's website launched in April.

But the operator to store as many retailers to middle-income buyers, faces uncertain position in the second half as shoppers pay more for gasoline and groceries.

During an interview with The Associated Press Monday, said Ullman is seen with shoppers consolidate their travel to the traditional Mall to save gas. Penney stores in malls traditional client traffic is "lukewarm", he said.

Starting this fall, clothing prices expected to increase because of the higher costs of materials such as cotton. That will intensify competition between retailers.

So far Penney had "no difficulty passing along increases in price" for its exclusive high-end modes, according to Ullman. However, when it comes to the basis of the lowest price in its stores, its buyers won't pay more. Penney said he was able to take business away from rivals, which increase the price, more it did.

"Some brands increased their more aggressive price that we have." the gap between their offer and our private brand offers actually increases, which makes our articles more attractive, "he told investors."

The company, however, remains cautious, with plans to order goods from 3% to 4% less than last year.

In the second quarter, Penney expected revenue at stores open at least a year to increase around 3% to 4%.

It provides that the net earnings per share between 20 and 24 cents, including restructuring charges of about 6 cents per share. Analysts predict 22 cents per share, according to FactSet.

The company raised its guidance to a range of $2.15 per share to $2.25 per share. In February, it had provided a range of $2 per share to $2.10 per share. Analysts expected $2.09 per share.

Shares fell to 3.2%, or $1.23 to $37.21 in a broader bond in retail stocks. Richard Jaffe, Stifel Nicolaus analyst, supposed that Penney and other retailers have seen their shares climb coming earnings season, and now, given the liberation good results expected for the moment, investors are profits.

Penney shares have increased 15% since the beginning of the year. Shares are traded on the upper end of their range of 52 weeks of $19.42 to $41.

Stimulates of make-over Penney profit

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.