by Evan Clark
Posted Monday May 16, 2011
From WWD.COM
J.C. Penney Co. Inc. increased first-quarter profits by 6.7 percent and plans to streamline operations and cut expenses to further boost the bottom line.
Net income rose to $64 million, or 28 cents a diluted share, from $60 million, or 25 cents, a year earlier. Sales for the three months ended April 30 inched up 0.4 percent to $3.94 billion from $3.93 billion on a 3.8 percent gain in comparable-store sales. Comps were driven by private and exclusive brands, including Liz Claiborne, Worthington and MNG by Mango.
"The steps we have taken to manage our expenses position us to increase the flow-through of sales to the bottom line," said Myron E. "Mike" Ullman 3rd, chairman and chief executive officer. "We are accelerating this process through a series of initiatives across the company to maximize operational effectiveness. We expect these ongoing actions will result in substantial expense savings, beginning this year, and allow us to significantly accelerate profitability." Specifically, the Plano, Tex.-based chain will streamline operations in its stores, supply chain and home office and "optimize" marketing expense.
Penney's projected annual earnings of $2.15 to $2.25, better than the $2.04 Wall Street expected.
