J.C. PENNEY REPORTS SUCCESSFUL FOURTH QUARTER AND YEAR END
J. C. Penney Company, Inc. has reported store sales grew 4.1 percent for the fourth quarter and 4.5 percent for the full year. This combination of strong sales growth, accelerated gross margins and disciplined expense reduction resulted in full year adjusted EBITDA of $715 million, a $435 million increase.
“We are very pleased with our performance for the fourth quarter and full year,” said Marvin Ellison, CEO. “Our focus on private brands, omnichannel and revenue per customer is clearly resonating as we continue to win market share in a competitive environment. We are also pleased that we delivered strong fourth quarter results while effectively managing our inventory, which finished the year up 2.6 percent. I would like to thank our over 100,000 associates who embrace our strategy and come to work each day focused on driving sales and providing excellent customer service.”
For the fourth quarter, which included a successful holiday season, JCPenney reported net sales of $4.0 billion compared to $3.9 billion in the fourth quarter of 2014. Comparable store sales rose 4.1 percent for the quarter. Home, Sephora, footwear, and handbags were the company’s top performing merchandise divisions during the quarter. Geographically, all regions delivered comp sales gains over the same period last year with the best performance in the western and northeastern regions of the country.
“While significant work remains to regain our status as a world-class retailer, the company’s financial performance this year indicates we are on the right path to achieving our long-term financial objectives,” added Ellison. “Building on the momentum of 2015, and the positive trends of the mid-tier US customer, we now expect positive adjusted earnings in 2016, and EBITDA of $1 billion.”