JCPenney and Macy's Report on Q1 Results
Thursday, May 14, 2015 at 1:04PM JC Penney Co. exceeded analysts’ estimates for Q1, showing smaller than expected losses/ Penney posted a loss of $167 million in the quarter ending May 2, compared to a net loss of $352 million Q1 2014. Women’s apparel, men’s and home were the company’s top performing merchandise divisions. Sephora inside JC Penney, available in 515 locations, also showed strong performance.
“Our exceptional customer experience, when combined with our strength in private brands, national brands and points of differentiation like Sephora inside J.C. Penney and the Disney Collection, give us confidence in our ability to earn customer loyalty and deliver on our long term goals,” he said. “In fact, based on our results to date, including a strong Easter and Mother's Day, we feel confident in raising our 2015 expectations for sales, gross margin and SG&A." The company expects same store sales to increase 4-5%.
Macy’s net income fell 13% to $193 million from $224 million in Q1 2014. Same store sales declined 0.7%.
“We fell short because of a confluence of factors,” said Terry J. Lundgren, Macy’s chairman and CEO. “Delayed merchandise shipments from the West Coast port slowdown and severe winter weather early in the quarter restrained business levels. Moreover, sales were negatively affected by lower levels of spending by international tourists visiting major U.S. cities with flagship Macy’s and Bloomingdale’s stores, including New York City, Chicago, Las Vegas and San Francisco.”
Macy’s is still pursuing a new store strategy, planning to open 32 new stores by 2018. Macy’s expects total sales growth of 1% and same store sales growth of 2% in fiscal 2015.
Source: Chain Store Age