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JCPENNEY REPORTS RECORD FOURTH QUARTER RESULTS

 PLANO, Texas, Feb. 25 /PRNewswire/ -- J.C. Penney Company, Inc. (NYSE: JCP) reported today that operating net income in the 14 weeks ended Jan. 30, 1993, was a record $375 million, or $2.85 per share. Net income in the 1991 period was $37 million, or 25 cents per share, and included restructuring charges of $264 million, or $2.03 per share. Excluding these charges, 1991 fourth quarter net income amounted to $301 million, or $2.28 per share.
 Commenting on the results, Chairman William R. Howell said, "Consumers have responded favorably to our private brand merchandise with its fashionability, quality, and prices which give us a competitive value advantage. Operating results of both JCPenney stores and catalog were substantially higher than the previous year's fourth quarter."
 For the 53 week fiscal year, net income of the department store and catalog retailer was $777 million, or $5.90 per share. Pretax earnings of $1,259 million in 1992 represented the highest level in the company's ninety year history. Net income in 1991 was $80 million, or 39 cents per share, and included restructuring charges and the cumulative effect of an accounting change totaling $448 million, or $3.61 per share. Excluding these nonrecurring items, net income in 1991 amounted to $528 million, or $4.00 per share.
 In the fourth quarter, gross margin dollars on a first-in, first-out (FIFO) basis improved 18.4 per cent. As a percent of retail sales, FIFO gross margin improved significantly from the previous year due to a lower level of markdowns as a result of lower initial prices. For the year, FIFO gross margin improved both in dollars and as a per cent of retail sales.
 The shift to more affordable retail prices which began in 1991 and continued in 1992, resulted in a LIFO benefit of $32 million in both the fourth quarter and full year. This compares with a LIFO benefit in 1991 of $116 million and $91 million for the quarter and year, respectively.
 Selling, general, and administrative expenses continue to be well managed. As a per cent of sales, all major categories of expenses declined from the level of last year, both in the fourth quarter and year.
 Other businesses recorded substantial gains for the fourth quarter and full year. Both JCPenney Insurance and JCPenney National Bank achieved record levels of profitability in 1992.
 Commenting on the year and the outlook, Mr. Howell added, "We have concluded a year where we saw strong, consistent growth in all of our merchandise divisions -- women's, men's, children's, home, and catalog. Our successful strategy of communicating to customers that JCPenney is the department store and catalog to shop for affordably priced basic and fashion offerings has been demonstrated in 1992. Early Spring merchandise sales in 1993 indicate a bright future, as we continue to keep our focus on providing the merchandise and services our customers want, improving the quality of everything we offer, and driving our costs down."
 J. C. PENNEY COMPANY, INC. AND SUBSIDIARIES
 Summary of Operating Results
 (Amounts in millions except per share data)
 Periods ended 14 weeks 13 weeks 53 weeks 52 weeks
 Pct. incr. Pct. incr.
 1/30/93 1/25/92 (decr.) 1/30/93 1/25/92 (decr.)
 Retail sales $6,085 $5,375 13.2 $18,009 $16,201 11.2
 Margins and expenses
 FIFO gross margin 1,956 1,652 18.4 5,937 5,269 12.7
 LIFO credit 32 116 32 91
 LIFO gross margin 1,988 1,768 12.5 5,969 5,360 11.4
 SG&A expenses (1,496) (1,378) 8.6 (5,160) (4,924) 4.8
 Finance charge
 revenue 142 160 (11.9) 570 647 (12.0)
 Interest expense,
 net (67) (79) (15.9) (258) (308) (16.4)
 Nonrecurring items -- (395) -- (395)
 Profits of other
 businesses 39 31 27.0 138 88 56.4
 Income before
 income taxes and
 cumulative effect
 of accounting
 change 606 107 1,259 468
 Income taxes (231) (70) (482) (204)
 Income before
 cumulative effect
 of accounting
 change 375 37 777 264
 Cumulative effect
 of accounting
 change for
 postretirement
 health care
 benefits -- -- -- (184)
 Net income(A) $ 375 $ 37 $ 777 $ 80
 Earnings per share - fully diluted
 Income before
 cumulative effect
 of accounting
 change $ 2.85 $ .25 $ 5.90 $ 1.97
 Net income(A) $ 2.85 $ .25 $ 5.90 $ .39
 (A) -- Excluding the effect of a nonrecurring charge in the fourth quarter of 1991, net income in 1992 increased 24.7 percent from 1991's earnings of $301 million, or $2.28 per share on a fully diluted basis. Excluding the effects of a nonrecurring charge and the cumulative effect of an accounting change in 1991, net income in 1992 increased 47.2 percent from 1991's earnings of $528 million, or $4.00 per share on a fully diluted basis.
 SUPPLEMENTAL DATA
 Periods ended 14 weeks 13 weeks 53 weeks 52 weeks
 1/30/93 1/25/92 1/30/93 1/25/92
 Average shares
 Primary 118.1 116.8 118.0 116.8
 Fully diluted 129.2 128.4 129.3 128.4
 FIFO gross margin
 percent retail
 sales 32.1 30.7 33.0 32.5
 SG&A percent
 retail sales 24.6 25.6 28.6 30.4
 Effective income
 tax rate 38.1 65.6 38.3 43.5
 Total receivables
 serviced -- -- $3,999 $4,410
 FIFO inventory -- -- $3,540 $3,211
 -0- 2/25/93
 /CONTACT: Duncan Muir of J.C. Penney Company, Inc., 214-431-1329/
 (JCP)


CO: J.C. Penney Company, Inc. ST: Texas IN: REA SU: ERN

TS -- NY016 -- 0268 02/25/93 09:24 EST
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Date:Feb 25, 1993
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