J.C. Penney Boosts Q3 Net 63 Percent, Launches Growth-Brands Division
November 12, 2010,
PLANO, Texas--J.C. Penney reported a 63 percent gain in third-quarter net income as the retailer introduced its new growth-brands division.
The bottom line in the quarter, which ended Oct. 30, was helped by a 4.9 percent reduction in total operating expenses, which included a 3.8 percent decline in selling, general and administrative expenses, along with a 23 percent drop in total pension expenses. Net sales rose just 0.2 percent to $4.2 billion, including a 1.9 percent increase in same-store sales. Gross margin dropped 150 basis points to 39 percent.
The first ventures of the new division, CLAD and Gifting Grace, are collaborations with Hearst Magazines and will be rolled out in summer 2011. Gifting Grace will provide an online gifting resource for women aged from 30 to 54 on its site, giftinggrace.com. CLAD will be an online resource for menswear targeted at men aged 25 to 54.
Other Articles By Author
HFN Launches Interactive Idea Book
HFN's DIGITAL EDITION
COVER STORY: HFN Turns 90
We commemorate HFN's 90th anniversary by paying tribute to the iconic retailer and supplier brands--and the people--that have helped the industry flourish, then and now.
ALSO IN THIS ISSUE:
- Up & Coming Leaders - The home industry is in capable and visionary hands as this year’s 40 Under 40 list attests. Today’s young leaders span all disciplines and varied levels of operation.
- Omnichannel Retailing - In the Mobile App World, Time is Money