JCPenney announces 4Q 2017 financial and full year results

  • Fourth Quarter Comparable Sales Increase 2.6%
  • Outstanding Debt Reduced by Over $600 Million in 2017

PLANO, Texas, 2018-Mar-06 — /EPR Retail News/ — J. C. Penney Company, Inc. (NYSE: JCP) today (Mar. 2, 2018) announced financial results for its fiscal fourth quarter and full year ended Feb. 3, 2018. Comparable sales increased 2.6 % for the fourth quarter and increased 0.1 % for full year 2017. Fourth quarter earnings per share was $0.81 and full year net loss per share was ($0.37). Fourth quarter adjusted earnings per share was $0.57 and full year adjusted earnings per share was $0.22. A reconciliation of GAAP to non-GAAP financial measures is included in the schedules accompanying the consolidated financial statements in this release.

Marvin R. Ellison, chairman and chief executive officer said, “We are encouraged by our results for the fourth quarter and for fiscal 2017. Through the hard work and dedication of the entire JCPenney team, we delivered our second consecutive year of positive adjusted earnings. For 2017, we improved adjusted earnings per share by 175 %, reduced our outstanding debt levels by over $600 million and generated over $200 million of free cash flow. During the fourth quarter, we delivered our strongest positive sales comps and achieved our largest gross margin improvement for the year. Our fourth quarter gross margin improvement, combined with our continued commitment to expense discipline, helped us generate adjusted earnings per share of $0.57 for the quarter.”

Ellison continued, “In 2018, we will intensify our market share efforts in Appliances, Mattresses and Furniture, while continuing to take steps to modernize our apparel assortment and omni-channel. Our strategy and plan is clear and consistent, and we remain focused on two critical factors – to operate the business for growth and deliver profitable earnings. I would like to thank our nearly 100,000 associates around our company for their hard work and more importantly, for their commitment to JCPenney.”

Fourth Quarter 2017 Results
Total net sales for the 14 weeks ended Feb. 3, 2018 increased 1.8 % to $4.03 billion compared to $3.96 billion for the 13 weeks ended Jan. 28, 2017. Comparable sales increased 2.6 % in the fourth quarter and were on the same 13 week basis as the fourth quarter last year.

Jewelry, Home, Sephora, Footwear and Handbags and Salon were the Company’s top performing divisions during the quarter. Geographically, the Southeast and Gulf Coast were the best performing regions of the country.

Cost of goods sold, which excludes depreciation and amortization, was $2.68 billion, or 66.4 % of sales, compared to $2.65 billion, or 66.9 % of sales in the same period last year. The improvement was primarily driven by decreased promotional activity during the quarter resulting from an improved inventory position. This improvement was partially offset by the continued growth in the Company’s online and major appliance businesses and higher shrink rates.

SG&A expenses were $943 million compared to $925 million for the same period last year. As a percentage of sales, SG&A expenses were 23.4 % and flat compared to last year. Reductions primarily in store controllable costs and marketing spend were partially offset by lower credit income and higher incentive compensation.

Net income was $254 million, or $0.81 per share, compared to net income of $192 million, or $0.61 per share in the same period last year. The improvement was primarily due to a $75 million tax reform benefit recorded in the fourth quarter this year.

Adjusted net income was $179 million, or $0.57 per share, for the fourth quarter this year. Adjusted net income for the fourth quarter last year was $202 million, or $0.64 per share, which included a gain of $62 million, or $0.20 per share, associated with the sale of the Company’s home office.

Full Year 2017 Results
Total net sales decreased (0.3) % to $12.51 billion compared to $12.55 billion last year. Comparable sales increased 0.1 % for full year 2017. The slight decline in total net sales was primarily due to store closures in 2017, most of which closed in the first half of the year, and was partially offset by incremental sales for the 53rd week.

For the year, cost of goods sold, which excludes depreciation and amortization, was $8.17 billion, or 65.4 % of sales, compared to $8.07 billion, or 64.3 % of sales last year. This increase was primarily driven by the liquidation of both closed store and slow-moving inventory, the continued growth in the Company’s online and major appliance businesses and higher shrink rates.

SG&A expenses declined 2 % or $70 million to $3.47 billion, or 27.7 % of sales, a decrease of 50 basis points as a percentage of sales compared to last year. These savings were primarily driven by reductions in store controllable costs and marketing efficiencies, which were partially offset by lower credit income and higher incentive compensation.

Net loss was ($116) million, or ($0.37) per share, compared to net income of $1 million, or $0.00 per share last year. This reduction was driven primarily by restructuring charges associated with the fiscal 2017 store closures and voluntary early retirement program.

Adjusted net income increased $44 million to $68 million, or $0.22 per share, compared to adjusted net income of $24 million, or $0.08 per share, last year.

Adjusted EBITDA was $972 million compared to $1.01 billion last year.

Inventory at year-end was $2.76 billion, a decrease of 3.2 % compared to last year-end. Capital expenditures for the year, net of landlord allowances, were $375 million. Free cash flow was a positive $213 million for full year 2017, an increase of $210 million versus last year.

Cash and cash equivalents at the end of year were $458 million. During fiscal 2017, the Company reduced its outstanding debt position by over $600 million. The Company ended the fiscal year with liquidity in excess of $2.3 billion.

Outlook
The Company’s 2018 full year guidance is as follows:

  • Comparable store sales: expected to be 0.0 % to 2.0 %; and
  • Adjusted earnings per share1: expected to be $0.05 to $0.25.

1 A reconciliation of non-GAAP forward-looking projections to GAAP financial measures is not available as the nature or amount of potential adjustments, which may be significant, cannot be determined at this time.

Fourth Quarter and Full Year Earnings Conference Call Details

At 8:30 a.m. ET today, the Company will host a live conference call conducted by Chairman and Chief Executive Officer Marvin R. Ellison and Chief Financial Officer Jeffrey Davis. Management will discuss the Company’s performance during the quarter and take questions from participants. To access the conference call, please dial (844) 243-9275, or (225) 283-0394 for international callers, and reference 6887218 conference ID or visit the Company’s investor relations website at http://ir.jcpenney.com. Supplemental slides will be available on the Company’s investor relations website approximately 10 minutes before the start of the conference call.

Telephone playback will be available for seven days beginning approximately two hours after the conclusion of the conference call by dialing (855) 859-2056, or (404) 537-3406 for international callers, and referencing 6887218 conference ID.

Investors and others should note that we currently announce material information using SEC filings, press releases, public conference calls and webcasts.  In the future, we will continue to use these channels to distribute material information about the Company and may also utilize our website and/or various social media to communicate important information about the Company, key personnel, new brands and services, trends, new marketing campaigns, corporate initiatives and other matters. Information that we post on our website or on social media channels could be deemed material; therefore, we encourage investors, the media, our customers, business partners and others interested in our Company to review the information we post on our website as well as the following social media channels:

Facebook (https://www.facebook.com/jcp) and Twitter (https://twitter.com/jcpnews).

Any updates to the list of social media channels we may use to communicate material information will be posted on the Investor Relations page of the Company’s website at www.jcpenney.com.

About JCPenney: 
J. C. Penney Company, Inc. (NYSE:JCP), one of the nation’s largest apparel and home furnishings retailers, combines an expansive footprint of approximately 875 stores across the United States and Puerto Rico with a powerful e-commerce site, jcp.com, to connect with shoppers how, when and where they prefer to shop. At every customer touchpoint, she will get her Penney’s worth of a broad assortment of products from an extensive portfolio of private, exclusive and national brands. Powering this shopping experience is the customer service and warrior spirit of approximately 100,000 associates across the globe, all driving toward the Company’s three strategic priorities of strengthening private brands, becoming a world-class omnichannel retailer and increasing revenue per customer. For additional information, please visit jcp.com.

Forward-Looking Statements 
This release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “expect” and similar expressions identify forward-looking statements, which include, but are not limited to, statements regarding sales, cost of goods sold, selling, general and administrative expenses, earnings, cash flows and interest expense. Forward-looking statements are based only on the Company’s current assumptions and views of future events and financial performance. They are subject to known and unknown risks and uncertainties, many of which are outside of the Company’s control that may cause the Company’s actual results to be materially different from planned or expected results. Those risks and uncertainties include, but are not limited to, general economic conditions, including inflation, recession, unemployment levels, consumer confidence and spending patterns, credit availability and debt levels, changes in store traffic trends, the cost of goods, more stringent or costly payment terms and/or the decision by a significant number of vendors not to sell us merchandise on a timely basis or at all, trade restrictions, the ability to monetize assets on acceptable terms, the ability to implement our strategic plan including our omnichannel initiatives, customer acceptance of our strategies, our ability to attract, motivate and retain key executives and other associates, the impact of cost reduction initiatives, our ability to generate or maintain liquidity, implementation of new systems and platforms, changes in tariff, freight and shipping rates, changes in the cost of fuel and other energy and transportation costs, disruptions and congestion at ports through which we import goods, increases in wage and benefit costs, competition and retail industry consolidations, interest rate fluctuations, dollar and other currency valuations, the impact of weather conditions, risks associated with war, an act of terrorism or pandemic, the ability of the federal government to fund and conduct its operations, a systems failure and/or security breach that results in the theft, transfer or unauthorized disclosure of customer, employee or Company information, legal and regulatory proceedings and the Company’s ability to access the debt or equity markets on favorable terms or at all. There can be no assurances that the Company will achieve expected results, and actual results may be materially less than expectations. Please refer to the Company’s most recent Form 10-Q for a further discussion of risks and uncertainties. Investors should take such risks into account and should not rely on forward-looking statements when making investment decisions. Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We do not undertake to update these forward-looking statements as of any future date.

Media Relations: 
(972) 431-3400
jcpnews@jcp.com
Follow us @jcpnews

Investor Relations: 
(972) 431-5500
jcpinvestorrelations@jcpenney.com

Source: J. C. Penney Company, Inc.

JCPenney announces leadership appointments

Company initiates personnel actions to streamline job functions and reduce expenses

PLANO, Texas, 2018-Mar-06 — /EPR Retail News/ — J. C. Penney Company, Inc. (NYSE: JCP) today (March 2, 2018) announced the appointment of Joe McFarland as executive vice president and chief customer officer, a newly-expanded role that includes responsibility for merchandising, as well as leading all JCPenney store operations. To ensure the positive momentum of its merchandising transformation, Jodie Johnson has been promoted to head of merchandising for women’s, beauty and family footwear; and James Starke has been promoted to head of merchandising for men’s, children’s, home and jewelry, both reporting to McFarland. Additionally, Therace Risch, will assume the combined titles of Chief Information Officer and Chief Digital Officer to reflect her added responsibility for omnichannel retail. As a result of this appointment, Mike Amend will be leaving the Company.

“Joe, Therace, Jodie and James are remarkable executive leaders who have demonstrated their ability to spearhead critical tasks and drive results and efficiencies along the way. Joe is a dedicated advocate for our associates, and knows first-hand how successful we can be when associates are empowered to deliver the best shopping experience possible. Jodie and James are credited for leading the turnaround of our merchandising strategy, and will continue to advance this effort by delivering the best assortment of style and value offered by any retailer. Appointing both Jodie and James to lead our merchant teams will ensure that we push merchandising decisions closer to the division heads and buyers for increased speed and efficiency. Furthermore, Therace understands the power of technology, and how it can significantly influence and enhance the way consumers shop and ultimately, be the point of differentiation on where they choose to buy,” said Marvin R. Ellison, chairman and chief executive officer for JCPenney. “By merging these critical retail functions under the oversight of four proven leaders, we can better align our operations to ensure every aspect of the business is focused on the customer experience.”

Home Office and Field Actions
As part of ongoing efforts to manage expenses, simplify operations and streamline workload in support of the Company’s long-term growth and profitability, approximately 130 Home Office positions were eliminated across various departments. Additionally, JCPenney recently restructured its group, regional, district and store support teams. This restructure eliminated bureaucracy, reduced support positions and reallocated store headcount to customer-facing positions. While the restructuring enabled the vast majority of impacted associates to assume a new role or leadership position within the stores organization, approximately 230 positions were subsequently eliminated. The annual cost savings generated from the home office and store reorganization are estimated at approximately $20-$25 million.

“As the Company continues to make progress on its strategic framework and implement new processes and organizational efficiencies, it is imperative that we maintain a thoughtful approach to managing expenses, while effectively supporting the needs of the business,” added Ellison. “I would like to thank Mike Amend for his service with the Company and wish him well in his future endeavors. Through his hard work, JCPenney has advanced its omnichannel capabilities, laying the groundwork for further innovation and growth.”

About JCPenney:
J. C. Penney Company, Inc. (NYSE:JCP), one of the nation’s largest apparel and home furnishings retailers, combines an expansive footprint of approximately 875 stores across the United States and Puerto Rico with a powerful e-commerce site, jcp.com, to connect with shoppers how, when and where they prefer to shop. At every customer touchpoint, she will get her Penney’s worth of a broad assortment of products from an extensive portfolio of private, exclusive and national brands. Powering this shopping experience is the customer service and warrior spirit of approximately 100,000 associates across the globe, all driving toward the Company’s three strategic priorities of strengthening private brands, becoming a world-class omnichannel retailer and increasing revenue per customer. For additional information, please visit jcp.com.

Forward-Looking Statements
This release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “expect” and similar expressions identify forward-looking statements, which include, but are not limited to, statements regarding sales, cost of goods sold, selling, general and administrative expenses, earnings, cash flows and interest expense. Forward-looking statements are based only on the Company’s current assumptions and views of future events and financial performance. They are subject to known and unknown risks and uncertainties, many of which are outside of the Company’s control that may cause the Company’s actual results to be materially different from planned or expected results. Those risks and uncertainties include, but are not limited to, general economic conditions, including inflation, recession, unemployment levels, consumer confidence and spending patterns, credit availability and debt levels, changes in store traffic trends, the cost of goods, more stringent or costly payment terms and/or the decision by a significant number of vendors not to sell us merchandise on a timely basis or at all, trade restrictions, the ability to monetize assets on acceptable terms, the ability to implement our strategic plan including our omnichannel initiatives, customer acceptance of our strategies, our ability to attract, motivate and retain key executives and other associates, the impact of cost reduction initiatives, our ability to generate or maintain liquidity, implementation of new systems and platforms, changes in tariff, freight and shipping rates, changes in the cost of fuel and other energy and transportation costs, disruptions and congestion at ports through which we import goods, increases in wage and benefit costs, competition and retail industry consolidations, interest rate fluctuations, dollar and other currency valuations, the impact of weather conditions, risks associated with war, an act of terrorism or pandemic, the ability of the federal government to fund and conduct its operations, a systems failure and/or security breach that results in the theft, transfer or unauthorized disclosure of customer, employee or Company information, legal and regulatory proceedings and the Company’s ability to access the debt or equity markets on favorable terms or at all. There can be no assurances that the Company will achieve expected results, and actual results may be materially less than expectations. Please refer to the Company’s most recent Form 10-Q for a further discussion of risks and uncertainties. Investors should take such risks into account and should not rely on forward-looking statements when making investment decisions. Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We do not undertake to update these forward-looking statements as of any future date.

Media Relations:
(972) 431-3400
jcpnews@jcp.com
follow us at @jcpnews on Twitter.

Investor Relations:
(972) 431-5500
jcpinvestorrelations@jcpenney.com

Source: J. C. Penney Company, Inc.

JCPenney highlights its sustainability and community efforts in its 2017 Corporate Social Responsibility Report

PLANO, Texas, 2017-Nov-09 — /EPR Retail News/ — JCPenney announced today (Nov. 8, 2017)  the release of its 2017 Corporate Social Responsibility Report, highlighting the Company’s sustainability and community efforts across its operations worldwide. The report, which details activities for fiscal years 2015 and 2016, illustrates the Company’s ongoing commitment to the highest level of corporate citizenship.

For the 2017 report, JCPenney partnered with Texas A&M University’s 180 Degrees Consulting group to learn the latest stakeholder expectations for CSR reporting. A team of six students from the group performed analysis to identify industry standards when reporting CSR data, and made suggestions to the Company based upon their findings. The group’s key recommendations drove the initial ideation of, and inspiration behind, the framework of the 2017 report, which summarizes each Company commitment using four pillars: our people, our communities, our products and our planet.

“The Golden Rule has guided every customer interaction at JCPenney for over a century, and we understand the importance of applying a similar ideology to our global efforts in social responsibility and environmental sustainability,” said Marvin R. Ellison, chairman and chief executive officer at JCPenney. “We recognize the important role we play in being a responsible employer, neighbor and community advocate, and acknowledge the significance of positively connecting with younger consumers who share these values.”

The online report outlines Company achievements in a variety of categories, including:

  • Diverse Workforce – As of 2016, more than half of the JCPenney associate population are minorities, and the progression is positively represented at all levels within the Company, including the executive team. In fact, Ellison is one of only five African-American CEO’s in the Fortune 500. Moreover, from 2013 to 2016, the percentage of ethnic minorities employed at JCPenney increased from 46 percent to 51 percent, and women have represented 80% of the total associate base since 2013.
  • Community Relations – In 2015 and 2016, JCPenney associates logged more than 67,700 volunteer hours, donating their time and skills to benefit local non-profit organizations. Associates also completed more than 800 volunteer projects in support of National Volunteer month within the same period. What’s more, through the Company’s “Change for the Better” giving campaign, JCPenney associates gave more than $3.5 million to 6,200 local non-profits across the country.
  • Responsible and Ethical Sourcing – J. C. Penney Purchasing Corporation (JCPPC) is one of the largest and most experienced importers of textiles and apparel in the United States, enabling JCPenney to purchase merchandise from nearly 2,600 domestic and foreign suppliers. The Company’s Social and Environmental Responsibility teams – located in buying and quality assurance offices around the world – work with an industry-leading third-party auditor to conduct compliance audits of factories producing JCPenney private brand apparel. In fiscal years 2015 and 2016, our third-party provider conducted over 2,000 social audits, and, in 2016, we extended this effort to include textile mills, completing over 100 assessments to help improve mill conditions.
  • Energy Conservation – In 2015, JCPenney set an aggressive energy and greenhouse gas emissions goal to reduce Scope 1 and Scope 2 greenhouse gas emissions per sq. ft. 15 percent by 2020. Just two years into the journey, JCPenney surpassed the goal by reducing emissions 19.6 percent, a decrease driven largely by behavior change and a robust Company-wide energy management system utilized in nearly 840 stores. As part of its ongoing energy management efforts, JCPenney continues a long-standing partnership with the U.S. Department of Energy’s ENERGY STARTM program. The Company has received ENERGY STAR’s Partner of the Year, Sustained Excellence designation for ten consecutive years, and proudly displays the ENERGY STAR logo at over 650 ENERGY STAR certified buildings throughout the Company.
  • Responsible Recycling – JCPenney is making efforts to significantly reduce waste by recycling 85% of the Company’s annual domestic waste by 2020. Through this promise, JCPenney has increased its recycling rate to 80 percent in 2016, up nine percent since 2014. Plus, the Company recycled 74,000 tons of waste in 2016 alone, while decreasing waste to landfill by 5,000 tons from 2014 to 2016. Furthermore, in 2015 and 2016, JCPenney recycled approximately 147,000 tons of waste, which equals approximately 80 percent of total waste from the Company’s operations.

Ongoing Ambitions
In 2015, JCPenney adopted a goal to reduce total water consumption across U.S. operations five percent by 2020 (2014 baseline). The Company is making strong progress toward the goal through a combination of engineered solutions and behavior change. As a result of these efforts, JCPenney has reduced domestic (in-store) water consumption by 12 percent from 2012 to 2016, and reduced landscape irrigation during the same time period by 66 percent.

For more information, please review the 2017 Corporate Sustainability Report by visiting the Company Info page under the Corporate Overview section of jcpenney.com.

About JCPenney:
J. C. Penney Company, Inc. (NYSE: JCP), one of the nation’s largest apparel and home furnishings retailers, combines an expansive footprint of approximately 875 stores across the United States and Puerto Rico with a powerful e-commerce site, jcp.com, to connect with shoppers how, when and where they prefer to shop. At every customer touchpoint, she will get her Penney’s worth of a broad assortment of products from an extensive portfolio of private, exclusive and national brands. Powering this shopping experience is the customer service and warrior spirit of over 100,000 associates across the globe, all driving toward the Company’s three strategic priorities of strengthening private brands, becoming a world-class omnichannel retailer and increasing revenue per customer. For additional information, please visit jcp.com.

Media Relations:
(972) 431-3400
jcpnews@jcp.com
follow us at @jcpnews

Investor Relations:
(972) 431-5500
jcpinvestorrelations@jcpenney.com

Source: J. C. Penney Company, Inc.

JCPenney elects Wonya Lucas to its board of directors

JCPenney elects Wonya Lucas to its board of directors

 

PLANO, Texas, 2017-Aug-21 — /EPR Retail News/ — J. C. Penney Company, Inc. (NYSE: JCP) today (Aug. 17, 2017) announced the election of Wonya Lucas, president and chief executive officer of Public Broadcasting Atlanta, to its board of directors. Highly regarded for her mass communications and broadcasting leadership, Lucas has vast knowledge in how media strategy, digital content, marketing and distribution drive consumer behavior.

“Wonya has an impressive background that spans brand management and corporate and media strategy, and has been responsible for creating some of television’s most highly acclaimed viewer programming,” said Marvin R. Ellison, chairman and chief executive officer of JCPenney. “Her distinguished background brings tremendous value to our board as JCPenney continues to build mindshare in a media landscape saturated with news and information.”

Before her leadership position with Public Broadcasting Atlanta, which includes NPR station WABE, and Atlanta’s PBS station, PBA, Lucas was president and chief executive officer for TV One, where she was responsible for all strategic decisions and daily operations. Prior to joining TV One, Lucas held several positions at Discovery Communications, including executive vice president and chief operating officer for Discovery Channel and Science Channel and global chief marketing officer with responsibility for marketing in 210 countries and over 130 networks. While at Discovery, Lucas helped launch Investigation Discovery (ID), HUB and OWN networks.

Prior to joining Discovery Communications in 2008, Lucas served as general and manager and executive vice president of The Weather Channel Networks, where she was responsible for daily operations, programming development, corporate strategy and development, strategic marketing for The Weather Channel and weather.com. Before joining The Weather Channel in 2002 as executive vice president of marketing, Lucas held several positions at Turner Broadcasting, including senior vice president of strategic marketing for cnn.com and CNN Networks Worldwide, vice president of business operations and network development for Turner Entertainment and vice president of entertainment marketing for TNT. Her other experience includes brand management roles for The Coca-Cola Company and The Clorox Company.

“What drew me to the JCPenney Board is the Company’s sense of community and the trust it has earned from millions of families who count on JCPenney for quality and value,” said Lucas. “I feel honored to be supporting the Company at a time when building brand relevance and competitive differentiation are more important than ever.”

Lucas holds a B.S. degree in industrial and systems engineering from the Georgia Institute of Technology, and an MBA in finance and marketing from The Wharton School at the University of Pennsylvania.

About JCPenney:
J. C. Penney Company, Inc. (NYSE: JCP), one of the nation’s largest apparel and home furnishings retailers, combines an expansive footprint of approximately 875 stores across the United States and Puerto Rico with a powerful e-commerce site, jcp.com, to connect with shoppers how, when and where they prefer to shop. At every customer touchpoint, she will get her Penney’s worth of a broad assortment of products from an extensive portfolio of private, exclusive and national brands. Powering this shopping experience is the customer service and warrior spirit of over 100,000 associates across the globe, all driving toward the Company’s three strategic priorities of strengthening private brands, becoming a world-class omnichannel retailer and increasing revenue per customer. For additional information, please visit jcp.com.

Media Relations:
(972) 431-3400
jcpnews@jcp.com

Investor Relations: 
(972) 431-5500
jcpinvestorrelations@jcpenney.com

Source: J. C. Penney Company, Inc.

###

J. C. Penney Company, Inc. to host 2Q 2017 financial results conference call on Friday, Aug. 11, 2017

PLANO, Texas, 2017-Aug-02 — /EPR Retail News/ — J. C. Penney Company, Inc. (NYSE: JCP) announced today (Aug. 1, 2017) that it will release its second quarter 2017 financial results on Friday, Aug. 11, at 7:30 a.m. ET. The news release will be followed by a live conference call and webcast conducted by Chairman and Chief Executive Officer Marvin R. Ellison and select members of management that will begin at 8:30 a.m. ET.

To access the conference call, please dial (844) 243-9275, or (225) 283-0394 for international callers, and reference 61085984 conference ID or visit the Company’s investor relations website at http://ir.jcpenney.com. Supplemental slides will be available on the Company’s investor relations website approximately 10 minutes before the start of the conference call.

Telephone playback will be available for seven days beginning approximately two hours after the conclusion of the conference call by dialing (855) 859-2056, or (404) 537-3406 for international callers, and referencing 61085984 conference ID.

Investors and others should note that we currently announce material information using SEC filings, press releases, public conference calls and webcasts.  In the future, we will continue to use these channels to distribute material information about the Company and may also utilize our website and/or various social media to communicate important information about the Company, key personnel, new brands and services, trends, new marketing campaigns, corporate initiatives and other matters.  Information that we post on our website or on social media channels could be deemed material; therefore, we encourage investors, the media, our customers, business partners and others interested in our Company to review the information we post on our website as well as the following social media channels:

Facebook (https://www.facebook.com/jcp) and Twitter (https://twitter.com/jcpnews).

Any updates to the list of social media channels we may use to communicate material information will be posted on the Investor Relations page of the Company’s website at www.jcpenney.com

About JCPenney:
J. C. Penney Company, Inc. (NYSE: JCP), one of the nation’s largest apparel and home furnishings retailers, combines an expansive footprint of approximately 875 stores across the United States and Puerto Rico with a powerful e-commerce site, jcp.com, to connect with shoppers how, when and where they prefer to shop. At every customer touchpoint, she will get her Penney’s worth of a broad assortment of products from an extensive portfolio of private, exclusive and national brands. Powering this shopping experience is the customer service and warrior spirit of over 100,000 associates across the globe, all driving toward the Company’s three strategic priorities of strengthening private brands, becoming a world-class omnichannel retailer and increasing revenue per customer. For additional information, please visit jcp.com.

Media Relations: 
(972) 431-3400
jcpnews@jcp.com

Investor Relations: 
(972) 431-5500
jcpinvestorrelations@jcpenney.com

Source: J. C. Penney Company, Inc.

Jeffrey Davis joins JCPenney as executive vice president and chief financial officer

PLANO, Texas, 2017-Jul-27 — /EPR Retail News/ — J. C. Penney Company, Inc. (NYSE: JCP) today (July 24, 2017) announced that Jeffrey Davis is joining the Company as executive vice president and chief financial officer, effective today. He will succeed Andrew Drexler, who has been serving as interim chief financial officer while the Company completed its search. Davis will report to Marvin R. Ellison, chairman and chief executive officer of JCPenney.

“On behalf of the board of directors and executive leadership, I’m pleased to welcome Jeff to JCPenney. He brings decades of finance, treasury and strategy experience from a host of leading companies, and will make an outstanding addition to our team,” said Ellison. “Jeff’s expertise will also be a tremendous asset to JCPenney as we continue to differentiate our business in a competitive retail climate and further strengthen our balance sheet moving forward.”

In his role, Davis will be responsible for all financial operations of the Company, including the oversight of finance teams at the JCPenney home office and shared services center in Salt Lake City. Among his primary objectives will be to continue the Company’s progress in identifying earnings growth opportunities, optimizing pricing, exercising SG&A discipline, managing inventory levels and deleveraging debt.

“JCPenney is a mainstay in American retailing, and I’m proud to have the opportunity to sustain its rich legacy alongside a group of dedicated associates committed to differentiating the Company from its traditional competitors,” said Davis. “I look forward to working with our teams in Plano and Salt Lake to continue strengthening the financial position of JCPenney, further propelling the Company’s momentum.”

Davis most recently served as chief financial officer at Darden Restaurants, overseeing finance and accounting, corporate reporting, tax, internal audit, treasury and investor relations. He also maintained oversight of Darden’s real estate acquisitions, as well as the company’s restaurant development.

Prior to Darden, Davis served as executive vice president and chief financial officer for Walmart U.S. stores. Upon joining Walmart in 2006, he served as vice president of finance for its U.S. specialty division before assuming positions of increasing responsibility, including senior vice president of finance and strategy, followed by a promotion to senior vice president and treasurer. Before Walmart, Davis held multiple finance-related positions with Lakeland Tours, McKesson Corporation and The Hillman Company.

About JCPenney:
J. C. Penney Company, Inc. (NYSE:JCP), one of the nation’s largest apparel and home furnishings retailers, is on a mission to ensure every customer’s shopping experience is worth her time, money and effort. Whether shopping jcp.com or visiting one of over 1,000 store locations across the United States and Puerto Rico, she will discover a broad assortment of products from a leading portfolio of private, exclusive and national brands.  Supporting this value proposition is the warrior spirit of over 100,000 JCPenney associates worldwide, who are focused on the Company’s three strategic priorities of strengthening private brands, becoming a world-class omnichannel retailer and increasing revenue per customer. For additional information, please visit jcp.com.

Forward-Looking Statements
This release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Words such as “expect” and similar expressions identify forward-looking statements, which include, but are not limited to, statements regarding the Company’s financial position, the revolving credit facility and interest expense.  Forward-looking statements are based only on the Company’s current assumptions and views of future events and financial performance. They are subject to known and unknown risks and uncertainties, many of which are outside of the Company’s control that may cause the Company’s actual results to be materially different from planned or expected results. Those risks and uncertainties include, but are not limited to, general economic conditions, including inflation, recession, unemployment levels, consumer confidence and spending patterns, credit availability and debt levels, changes in store traffic trends, the cost of goods, more stringent or costly payment terms and/or the decision by a significant number of vendors not to sell us merchandise on a timely basis or at all, trade restrictions, the ability to monetize non-core assets on acceptable terms, the ability to implement our strategic plan including our omnichannel initiatives, customer acceptance of our strategies, our ability to attract, motivate and retain key executives and other associates, the impact of cost reduction initiatives, our ability to generate or maintain liquidity, implementation of new systems and platforms, changes in tariff, freight and shipping rates, changes in the cost of fuel and other energy and transportation costs, disruptions and congestion at ports through which we import goods, increases in wage and benefit costs, competition and retail industry consolidations, interest rate fluctuations, dollar and other currency valuations, the impact of weather conditions, risks associated with war, an act of terrorism or pandemic, the ability of the federal government to fund and conduct its operations, a systems failure and/or security breach that results in the theft, transfer or unauthorized disclosure of customer, employee or Company information, legal and regulatory proceedings and the Company’s ability to access the debt or equity markets on favorable terms or at all.  There can be no assurances that the Company will achieve expected results, and actual results may be materially less than expectations.  Please refer to the Company’s most recent Form 10-Q for a further discussion of risks and uncertainties. Investors should take such risks into account and should not rely on forward-looking statements when making investment decisions. Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made.  We do not undertake to update these forward-looking statements as of any future date.

Media Relations:
(972) 431-3400
jcpnews@jcp.com
Follow @jcpnews on Twitter for the latest announcements and Company information.

Investor Relations:
(972) 431-5500
jcpinvestorrelations@jcpenney.com

Source:  J. C. Penney Company, Inc.

JCPenney completes refinancing of its $2.35 billion senior secured asset-based revolving credit facility

Refinanced Revolving Facility Provides Improved Terms and Extended Maturity

PLANO, Texas, 2017-Jun-21 — /EPR Retail News/ — J. C. Penney Company, Inc. (NYSE: JCP) announced today (June 20, 2017) that it has completed the refinancing of its $2.35 billion senior secured asset-based revolving credit facility. The amended and restated facility provides improved pricing terms and extends the maturity from 2019 to 2022. The revolving line of credit will remain available for seasonal working capital needs and general corporate purposes.

“As part of our ongoing pursuit to further strengthen the Company’s financial position, we’re pleased to close on the refinancing of our revolving credit facility, providing us enhanced terms and continued fiscal flexibility,” said Marvin R. Ellison, chairman and chief executive officer of JCPenney. “We thank our banking partners for their ongoing support and confidence.”

The arrangement of the credit facility was co-led by Wells Fargo, Bank of America Merrill Lynch, J.P. Morgan, Barclays and Goldman Sachs.

About JCPenney:
J. C. Penney Company, Inc. (NYSE:JCP), one of the nation’s largest apparel and home furnishings retailers, is on a mission to ensure every customer’s shopping experience is worth her time, money and effort. Whether shopping jcp.com or visiting one of over 1,000 store locations across the United States and Puerto Rico, she will discover a broad assortment of products from a leading portfolio of private, exclusive and national brands.  Supporting this value proposition is the warrior spirit of over 100,000 JCPenney associates worldwide, who are focused on the Company’s three strategic priorities of strengthening private brands, becoming a world-class omnichannel retailer and increasing revenue per customer. For additional information, please visit jcp.com.

Forward-Looking Statements
This release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Words such as “expect” and similar expressions identify forward-looking statements, which include, but are not limited to, statements regarding the Company’s financial position, the revolving credit facility and interest expense.  Forward-looking statements are based only on the Company’s current assumptions and views of future events and financial performance. They are subject to known and unknown risks and uncertainties, many of which are outside of the Company’s control that may cause the Company’s actual results to be materially different from planned or expected results. Those risks and uncertainties include, but are not limited to, general economic conditions, including inflation, recession, unemployment levels, consumer confidence and spending patterns, credit availability and debt levels, changes in store traffic trends, the cost of goods, more stringent or costly payment terms and/or the decision by a significant number of vendors not to sell us merchandise on a timely basis or at all, trade restrictions, the ability to monetize non-core assets on acceptable terms, the ability to implement our strategic plan including our omnichannel initiatives, customer acceptance of our strategies, our ability to attract, motivate and retain key executives and other associates, the impact of cost reduction initiatives, our ability to generate or maintain liquidity, implementation of new systems and platforms, changes in tariff, freight and shipping rates, changes in the cost of fuel and other energy and transportation costs, disruptions and congestion at ports through which we import goods, increases in wage and benefit costs, competition and retail industry consolidations, interest rate fluctuations, dollar and other currency valuations, the impact of weather conditions, risks associated with war, an act of terrorism or pandemic, the ability of the federal government to fund and conduct its operations, a systems failure and/or security breach that results in the theft, transfer or unauthorized disclosure of customer, employee or Company information, legal and regulatory proceedings and the Company’s ability to access the debt or equity markets on favorable terms or at all.  There can be no assurances that the Company will achieve expected results, and actual results may be materially less than expectations.  Please refer to the Company’s most recent Form 10-Q for a further discussion of risks and uncertainties. Investors should take such risks into account and should not rely on forward-looking statements when making investment decisions. Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made.  We do not undertake to update these forward-looking statements as of any future date.

SOURCE: JCPenney Corporation

Media Relations:
(972) 431-3400
jcpnews@jcp.com
follow us at @jcpnews

Investor Relations:
(972) 431-5500
jcpinvestorrelations@jcpenney.com

 

 

JCPenney appoints Marci Grebstein as executive vice president, chief marketing officer

PLANO, Texas, 2017-May-24 — /EPR Retail News/ — JCPenney [NYSE: JCP] today (May 23, 2017) announced that Marci Grebstein will join the Company’s executive leadership team as executive vice president, chief marketing officer in June. A highly accomplished marketing executive, Grebstein brings over 20 years of retail marketing experience overseeing advertising campaigns, brand positioning, market analysis and digital strategies designed to enhance brand awareness and accelerate revenue growth. Grebstein will report to Chairman and Chief Executive Officer Marvin R. Ellison.

“Marci is an outstanding senior leader with a proven track record of developing winning marketing strategies for a diverse cross-section of leading national retailers,” said Ellison. “As we focus on enhancing our Home Refresh strategy, better utilizing customer data and optimizing our omnichannel capabilities, her broad retail expertise will be invaluable as we seek to differentiate our business through strategic marketing initiatives that will entice new and loyal customers to choose JCPenney for their homes and families.”

Grebstein most recently served as chief marketing officer for Lowe’s Home Improvement, where she was instrumental in driving an integrated and data-driven omnichannel marketing approach to build customer loyalty and position the company for continued growth. Prior to her role as chief marketing officer for Lowe’s, she served as vice president of advertising for the retailer, leading the development and execution of Lowe’s overall advertising strategy and ensuring that the company’s brand promise was brought to life consistently across all platforms.

Prior to joining Lowe’s, Grebstein worked for Food Lion of Delhaize America, overseeing the repositioning of the grocery store chain in her role as vice president of marketing and brand strategy. Grebstein also spent 16 years at Staples, Inc., holding positions of increasing responsibility to include vice president of business-to-business marketing and e-commerce. Grebstein holds a Bachelor of Science degree in management and marketing from Boston College.

“I have been inspired by the continued progress of one of America’s most iconic retailers in the midst of a highly competitive and ever evolving retail environment,” said Grebstein. “I am eager to begin working with Marvin and the entire team at JCPenney to lead a marketing strategy that will continue to build on the Company’s momentum in achieving sustainable growth and profitability.”

About JCPenney:

J. C. Penney Company, Inc. (NYSE:JCP), one of the nation’s largest apparel and home furnishings retailers, is on a mission to ensure every customer’s shopping experience is worth her time, money and effort. Whether shopping jcp.com or visiting one of over 1,000 store locations across the United States and Puerto Rico, she will discover a broad assortment of products from a leading portfolio of private, exclusive and national brands.  Supporting this value proposition is the warrior spirit of over 100,000 JCPenney associates worldwide, who are focused on the Company’s three strategic priorities of strengthening private brands, becoming a world-class omnichannel retailer and increasing revenue per customer. For additional information, please visit jcp.com.

Media Relations:
(972) 431-3400
jcpnews@jcp.com
Follow @jcpnews on Twitter for the latest announcements and Company information.

Investor Relations:
(972) 431-5500
jcpinvestorrelations@jcpenney.com

Source: J. C. Penney Company, Inc.

JCPenney launches B2B solutions for operators and facility managers in the hospitality and multi-unit residential industries

Retailer equipped to supply linens, towels, mattresses, window treatments and major appliances to hotels, vacation rentals and multi-unit properties

PLANO, Texas, 2017-May-19 — /EPR Retail News/ —As JCPenney [NYSE: JCP] continues to diversify and explore new business opportunities, the Company is expanding upon its successful home refresh growth initiative by offering business-to-business solutions for operators and facility managers in the hotel and lodging industry, as well as the multi-unit residential industry. The Company has a long history of designing and sourcing high-quality home textiles, and with its recent re-entry into the major appliance market in 2016, JCPenney is poised to affordably accommodate hotels, innkeepers, property management companies and more to fulfill their commercial and bulk purchase needs.

“While we continue to take steps to improve our apparel strategy and assortment, we see our home refresh initiative as a great vehicle for growth and differentiation. The U.S. hospitality industry represents approximately $200 billion* annually and a significant opportunity for JCPenney to gain market share and drive increased revenue per customer with major appliances and a renewed focus on soft home goods,” said Marvin R. Ellison, chairman and chief executive officer of JCPenney. “Our entry into the B2B program reinforces our home refresh initiative, while providing new and innovative ways to achieve sustainable growth and profitability. The idea first stemmed from hotel operators who were already ordering large volume purchases of bedding, bath and window treatments from JCPenney.com. We are staffing an outside sales force with experience and expertise to engage targeted businesses. Our broad assortment of private brands in soft home give us a unique cost and value advantage in this new and exciting space.”

The JCPenney B2B program utilizes the Company’s nationwide fleet of brick-and-mortar stores and its vast supply chain network to meet the needs of small business owners and connect with local communities. JCPenney offers an important competitive advantage by being one of the most experienced retail sourcing organizations in the industry. By hedging raw materials, working with a strong supplier base in over 30 countries and implementing a rapid production cycle time, JCPenney gives business clients the assurance that they are receiving the best quality products when they need them.

According to a recent survey, there are roughly five million hotel rooms in more than 52,000 properties in the U.S. today.** Hotel rooms have one or two beds requiring multiple sets of sheets, blankets, pillows, towels and window treatments, which could be furnished with luxurious, yet durable linens from JCPenney Home™ or Royal Velvet®. JCPenney also stocks uniforms, scrubs and basic workwear, as well as major appliances, including large capacity washers, dryers, refrigerators and microwaves from leading industry brands. These appliances are used to furnish apartments, condos and townhomes managed by commercial property groups across the country.

Firming up Mattress Sales
The JCPenney B2B solution also provides custom window treatments, furniture and mattresses. Mattress sales have been so successful among traditional shoppers, the Company will be expanding its mattress showrooms to an additional 300 stores by early fall. This expansion will feature the industry’s leading brands such as Serta®, iComfort®, Sealy®, Stearns & Foster®, along with Beautyrest® and Tempur-Pedic® that will be available in over 500 JCPenney mattress showrooms chain wide. From firm to ultra-plush, pillow top to memory foam, JCPenney has reorganized its mattress showrooms to help customers shop by comfort level and response has been overwhelming.

By working with JCPenney B2B solutions, small business owners and non-profit organizations will receive competitive discounts, bulk pricing, commercial credit offers and tax exemptions for eligible businesses. Business clients will also have the ability to customize their order with a dedicated team of B2B consultants specially trained in this area.

Businesses that are interested in learning more about the B2B solutions that JCPenney has to offer can email b2b-sm@jcp.com.

This release, along with other Company announcements, photos and videos are available for download at jcpnewsroom.com. Media and other stakeholders are encouraged to follow the Company’s corporate Twitter handle using @jcpnews.

*STR, Inc. 2017 HOST Almanac
**2015 STR, Inc. census database

About JCPenney:
J. C. Penney Company, Inc. (NYSE:JCP), one of the nation’s largest apparel and home furnishings retailers, is on a mission to ensure every customer’s shopping experience is worth her time, money and effort. Whether shopping jcp.com or visiting one of over 1,000 store locations across the United States and Puerto Rico, she will discover a broad assortment of products from a leading portfolio of private, exclusive and national brands. Supporting this value proposition is the warrior spirit of over 100,000 JCPenney associates worldwide, who are focused on the Company’s three strategic priorities of strengthening private brands, becoming a world-class omnichannel retailer and increasing revenue per customer. For additional information, please visit jcp.com.

Forward-Looking Statements
This release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “expect” and similar expressions identify forward-looking statements, which include, but are not limited to, statements regarding sales, gross margin, selling, general and administrative expenses, earnings and cash flows. Forward-looking statements are based only on the Company’s current assumptions and views of future events and financial performance. They are subject to known and unknown risks and uncertainties, many of which are outside of the Companys control that may cause the Company’s actual results to be materially different from planned or expected results. Those risks and uncertainties include, but are not limited to, general economic conditions, including inflation, recession, unemployment levels, consumer confidence and spending patterns, credit availability and debt levels, changes in store traffic trends, the cost of goods, more stringent or costly payment terms and/or the decision by a significant number of vendors not to sell us merchandise on a timely basis or at all, trade restrictions, the ability to monetize non-core assets on acceptable terms, the ability to implement our strategic plan including our omnichannel initiatives, customer acceptance of our strategies, our ability to attract, motivate and retain key executives and other associates, the impact of cost reduction initiatives, our ability to generate or maintain liquidity, implementation of new systems and platforms including EMV chip technology, changes in tariff, freight and shipping rates, changes in the cost of fuel and other energy and transportation costs, disruptions and congestion at ports through which we import goods, increases in wage and benefit costs, competition and retail industry consolidations, interest rate fluctuations, dollar and other currency valuations, the impact of weather conditions, risks associated with war, an act of terrorism or pandemic, the ability of the federal government to fund and conduct its operations, a systems failure and/or security breach that results in the theft, transfer or unauthorized disclosure of customer, employee or Company information, legal and regulatory proceedings and the Companys ability to access the debt or equity markets on favorable terms or at all. There can be no assurances that the Company will achieve expected results, and actual results may be materially less than expectations. Please refer to the Company’s most recent Form 10-Q for a further discussion of risks and uncertainties. Investors should take such risks into account and should not rely on forward-looking statements when making investment decisions. Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We do not undertake to update these forward-looking statements as of any future date.

Media Relations:
(972) 431-3400
jcpnews@jcp.com
Follow @jcpnews on Twitter

Source: J. C. Penney Company, Inc.

J. C. Penney Company to host 1Q 2017 financial results conference call on Friday, May 12

PLANO, Texas, 2017-May-02 — /EPR Retail News/ — J. C. Penney Company, Inc. (NYSE: JCP) announced today (May 1, 2017) that it will release its first quarter 2017 financial results on Friday, May 12, at 7:30 a.m. ET. The news release will be followed by a live conference call and webcast conducted by Chairman and Chief Executive Officer Marvin R. Ellison and Chief Financial Officer Ed Record that will begin at 8:30 a.m. ET.

To access the conference call, please dial (844) 243-9275, or (225) 283-0394 for international callers, and reference 15893982 conference ID or visit the Company’s investor relations website at http://ir.jcpenney.com. Supplemental slides will be available on the Company’s investor relations website approximately 10 minutes before the start of the conference call.

Telephone playback will be available for seven days beginning approximately two hours after the conclusion of the conference call by dialing (855) 859-2056, or (404) 537-3406 for international callers, and referencing 15893982 conference ID.

Investors and others should note that we currently announce material information using SEC filings, press releases, public conference calls and webcasts.  In the future, we will continue to use these channels to distribute material information about the Company and may also utilize our website and/or various social media to communicate important information about the Company, key personnel, new brands and services, trends, new marketing campaigns, corporate initiatives and other matters.  Information that we post on our website or on social media channels could be deemed material; therefore, we encourage investors, the media, our customers, business partners and others interested in our Company to review the information we post on our website as well as the following social media channels:

Facebook (https://www.facebook.com/jcp) and Twitter (https://twitter.com/jcpnews).

Any updates to the list of social media channels we may use to communicate material information will be posted on the Investor Relations page of the Company’s website at www.jcpenney.com

About JCPenney:
J. C. Penney Company, Inc. (NYSE:JCP), one of the nation’s largest apparel and home furnishings retailers, is on a mission to ensure every customer’s shopping experience is worth her time, money and effort. Whether shopping jcp.com or visiting one of over 1,000 store locations across the United States and Puerto Rico, she will discover a broad assortment of products from a leading portfolio of private, exclusive and national brands.  Supporting this value proposition is the warrior spirit of over 100,000 JCPenney associates worldwide, who are focused on the Company’s three strategic priorities of strengthening private brands, becoming a world-class omnichannel retailer and increasing revenue per customer. For additional information, please visit jcp.com.

Media Relations:
(972) 431-3400
jcpnews@jcp.com

Investor Relations:
(972) 431-5500
jcpinvestorrelations@jcpenney.com

Source: J. C. Penney Company, Inc.

JCPenney, SEPHORA add 70 new SEPHORA inside JCPenney locations and 32 expansions

JCPenney, SEPHORA add 70 new SEPHORA inside JCPenney locations and 32 expansions

 

  • SEPHORA inside JCPenney Stores Offer Same-Day Pick Up of Online Orders
  • Growth Spurs Expanded Assortment Online and the Hiring of Over 800 Beauty Consultants

PLANO, Texas, 2017-Apr-25 — /EPR Retail News/ — JCPenney [NYSE: JCP] and SEPHORA are making beauty accessible to even more customers across the country with the addition of 70 new SEPHORA inside JCPenney locations and 32 expansions beginning May 5. Introduced in 2006, SEPHORA inside JCPenney is an exclusive beauty destination offering a curated selection of leading makeup, fragrances, skin and haircare brands that will be available in nearly 650 JCPenney stores in 2017.

“Creating a best-in-class beauty experience in stores is one of our biggest advantages over the competition. Since establishing the first Sephora inside JCPenney over 10 years ago, beauty has become a formidable growth strategy that makes our brick and mortar stores a dynamic and inspiring place to shop,” said Marvin R. Ellison, chairman and CEO of JCPenney. “We are also taking an omnichannel approach to shopping Sephora inside JCPenney by strengthening our technology and infrastructure to reach new beauty customers through JCPenney.com. We’ve launched the ability for customers to purchase Sephora online and pick up their order at a JCPenney store the same day. This is one example of how we’re delivering on the customer’s expectations for accessibility and convenience.”

With new innovations inspiring constant demand for beauty, JCPenney has significantly expanded its SEPHORA offering to include a broader assortment of products, tools, shades, colors and fragrances available at JCPenney.com. And soon, JCPenney will also introduce a new online feature that will enable clients to book a comprehensive custom makeover with a SEPHORA beauty consultant.

SEPHORA inside JCPenney shops feature a unique open-sell environment encompassing up to 2,600 square feet of cosmetics, skincare, fragrance and beauty accessories. In addition to the 70 new locations opening over the next few months, 32 existing SEPHORA inside JCPenney shops will expand in size by nearly 50 percent to accommodate more products and client services, such as Benefit Brow Bars, which will be introduced to 25 new and existing SEPHORA inside JCPenney locations. A key component of the SEPHORA inside JCPenney experience are the beauty consultants who provide unbiased expert advice on color trends, skincare and grooming solutions. As part of the beauty expansion, the Company will hire an additional 800 consultants nationwide.

SEPHORA inside JCPenney features an expansive array of more than 50 brands including Origins®, SEPHORA Collection, Kat Von D®, Make Up For Ever®, Nars®, Urban Decay® and Kate Somerville®. Starting this spring, Clinique®, one of America’s leading cosmetic brands, as well as, Anastasia Beverly Hills, belif, Laura Mercier®, Caudalie®, Farmacy®, Fresh® and Tarte® will expand to additional SEPHORA inside JCPenney locations. SEPHORA inside JCPenney also has new haircare brands such as Dry Bar®, Living Proof® and Bumble and bumble® now available in stores. To discover which brands meet their needs, clients are encouraged to try and test product samples as specially trained beauty consultants provide recommendations.

“We are exceptionally proud of our SEPHORA inside JCPenney partnership. JCPenney is a powerhouse retailer, and we are excited to share the SEPHORA experience with even more JCPenney customers this year,” said Satish Malhotra, executive vice president and chief operating officer of Sephora Americas. “As we celebrate 10 years together, we look forward to serving more markets that we have not yet reached, inspiring our new and existing clients to learn, play and get inspired by beauty.”

JCPenney is one of the only retailers to offer a comprehensive beauty and fashion solution that addresses women’s aspirations for a pulled together head-to-toe look. To encourage cross-promotion within the store, JCPenney salons and SEPHORA inside JCPenney will support a special “Love Mom” event planned for May 6, in participating stores. The dedicated Mother’s Day event will provide complimentary skin and hair consultations, including Xpress Bar salon touch-ups.

For a complete list of SEPHORA inside JCPenney 2017 openings, expansions and images, please visit jcpnewsroom.com/SephorainsideJCPenney.

About JCPenney:
J. C. Penney Company, Inc. (NYSE:JCP), one of the nation’s largest apparel and home furnishings retailers, is on a mission to ensure every customer’s shopping experience is worth her time, money and effort. Whether shopping jcp.com or visiting one of over 1,000 store locations across the United States and Puerto Rico, she will discover a broad assortment of products from a leading portfolio of private, exclusive and national brands. Supporting this value proposition is the warrior spirit of over 100,000 JCPenney associates worldwide, who are focused on the Company’s three strategic priorities of strengthening private brands, becoming a world-class omnichannel retailer and increasing revenue per customer. For additional information, please visit jcp.com.

About SEPHORA Americas:
Bold, Boundless, addictive – SEPHORA. A revolutionary beauty retailer, SEPHORA has been changing the face of prestige cosmetics since its industry-shaking debut in 1970s Paris. SEPHORA was acquired by leading luxury group LVMH Moët Hennessy Louis Vuitton in 1997 and launched its innovative concept stateside in 1998, where its dynamic, open-sell atmosphere evolved by merging the freedom of experimentation and product discovery with the expertise of personal consultants. Today, stores are home to a curated assortment of 200 world-class brands – including classics, cult favorites, emerging collections and SEPHORA’s own private label, SEPHORA COLLECTION – and feature more than 14,000 unique products across makeup, skincare, perfume, haircare, body, professional tools, and more. Powered by SEPHORA University, SEPHORA is the beauty education hub, offering customized consultations at the Beauty Studio, a variety of complimentary classes and one-on-one service from Personal Beauty Advisors, along with exclusive retail technology including SKINCARE IQ, COLOR IQ and Scentsa, resulting in the most expansive educational services in beauty retail. With over 1,780 locations in 29 countries – including 370 in North America and 546 SEPHORA inside JCPenney locations – SEPHORA is an international force in beauty. Adding to its global retail network, SEPHORA’s award-winning website, SEPHORA.com, and its every-growing presence on Twitter, Facebook and Pinterest, make it the world’s premier digital beauty destination. SEPHORA’s vibrant, interactive online community, Beauty Talk, amplifies the in-store experience by offering clients exclusive access to personalized beauty advice from SEPHORA’s PRO Artistry Team and provides a platform for open dialogue with beauty aficionados from around the world. For the latest in beauty, please visit SEPHORA.com.

Media Relations:
(972) 431-3400
jcpnews@jcp.com
Follow us @jcpnews

Source: J. C. Penney Company, Inc.

###

JCPenney announces the election of Debora Plunkett to its board of directors

Colleen Barrett to Retire from the Board in May

PLANO, Texas, 2017-Mar-06 — /EPR Retail News/ — J. C. Penney Company, Inc. (NYSE:JCP) today (March 2, 2017) announced the election of Debora Plunkett, former senior advisor to the director of the U.S. National Security Agency (NSA), to its board of directors. Possessing extensive experience in cybersecurity, information assurance and innovation in information security, Plunkett has a deep understanding of the data-driven and interconnected world of today.

“Debora has a strong background in information management and technology, and has been trusted by some of the nation’s top leaders to deliver robust security solutions and policies for the U.S. government,” said Marvin R. Ellison, chairman and CEO of JCPenney. “Her distinguished background brings tremendous value to our board as JCPenney continues on a path to becoming a world-class omnichannel retailer.”

Most recently, Plunkett has served as a professor at University of Maryland University College teaching graduate-level cybersecurity courses. She also provides consultation on cybersecurity, information assurance and management topics at her firm, Plunkett Associates LLC. Prior to these positions, she served as senior advisor to the director of the NSA, leading efforts to develop and deliver solutions to improve diversity, inclusion and equality for a highly technical workforce. Prior to that, Plunkett served as director and deputy director of information assurance for the NSA, managing the agency’s information assurance and cyber defense mission, and also held a variety of executive leadership, supervisory and analytical roles for the NSA. She also served as director for the Office of Transnational Threats at the National Security Council of The White House. Plunkett currently serves as a strategic advisory board member for the International Consortium for Minority Cybersecurity Professionals and an advisory board member for CyberMaryland.

Plunkett has a B.S. degree in natural science from Towson University, a Master of Science in business from Johns Hopkins University, a Master of Science in national security strategy from National War College and an M.B.A. from Johns Hopkins University.

The Company also announced that Colleen Barrett, President Emeritus of Southwest Airlines Co., will retire from the Board at the end of her term, which concludes on May 19, 2017, at the Company’s Annual Meeting of Stockholders. Barrett joined the JCPenney board in 2004, and currently chairs the corporate governance committee.

“Colleen is a trusted member of our board, and her legacy of building award-winning customer service at Southwest Airlines has benefitted JCPenney for over 13 years,” said Ellison. “Not only has Colleen been a respected member of the board, her enthusiasm and passion for JCPenney was instrumental in sparking the Warrior Spirit among JCPenney associates in recent years, leading to a strong resurgence in our Company culture. We thank her for her service, and wish her well in future endeavors.”

About JCPenney:
J. C. Penney Company, Inc. (NYSE:JCP), one of the nation’s largest apparel and home furnishings retailers, is on a mission to ensure every customer’s shopping experience is worth her time, money and effort. Whether shopping jcp.com or visiting one of over 1,000 store locations across the United States and Puerto Rico, she will discover a broad assortment of products from a leading portfolio of private, exclusive and national brands. Supporting this value proposition is the warrior spirit of over 100,000 JCPenney associates worldwide, who are focused on the Company’s three strategic priorities of strengthening private brands, becoming a world-class omnichannel retailer and increasing revenue per customer. For additional information, please visit jcp.com.

Media Relations:
(972) 431-3400
jcpnews@jcp.com
follow us at @jcpnews

Investor Relations:
(972) 431-5500
jcpinvestorrelations@jcpenney.com

Source: J. C. Penney Company, Inc.

JCPenney achieves $1 Billion in EBITDA for Full Year 2016; a $477 Million Improvement

  • Operating Income Grew $292 Million in Fourth Quarter and $484 Million for Full Year

PLANO, Texas, 2017-Feb-27 — /EPR Retail News/ — J. C. Penney Company, Inc. (NYSE: JCP) today (Feb. 24, 2017) announced financial results for its fiscal fourth quarter and full year ended Jan. 28, 2017. Comparable store sales were (0.7) % for the fourth quarter and flat for the full year. On a two-year stack basis, comparable sales grew 3.4 % and 4.5 % for the fourth quarter and full year, respectively. The Company delivered a $514 million improvement in net income for the full year.

Marvin R. Ellison, chairman and chief executive officer, said, “We are pleased that in the face of a very challenging 2016 retail environment we delivered our first positive net income since 2010. As recent as 2013, JCPenney reported a net loss of nearly $1.3 billion, or ($5.13) per share, and negative EBITDA of $641 million. This year, we delivered positive net income and generated EBITDA of over $1 billion. This is a reflection that the growth initiatives we laid out at our analyst meeting are working. These initiatives drove significant category growth in the fourth quarter, and provide us a platform to build upon in the years to come. Although our quarter was negatively impacted by the first three weeks of November, we are pleased that we delivered positive sales comps in the combined December and January period. We also saw record online performance over the holiday season, and with our continued focus on improved site functionality, expanded and enhanced fulfillment and continued growth in our assortment, we know this will allow us to deliver significant growth in the digital business.”

Ellison continued, “This year was not without its challenges, particularly in our women’s apparel business, but I am proud this team delivered on our goal to return our company to profitability in 2016. This is no small feat when considering the situation a few years ago, but our over 100,000 associates embraced our strategy and came to work each day focused on doing their part to drive this incredible turnaround in profitability.”

Fourth Quarter Results

JCPenney reported net sales of $4.0 billion in the fourth quarter of 2016 and 2015. Comparable store sales were (0.7) % for the quarter.

Home, Sephora, Salon and Fine Jewelry were the Company’s top performing merchandise divisions during the quarter. Geographically, the Southeast and Pacific were the best performing regions of the country.

For the fourth quarter, gross margin was 33.1 % of sales, a 100 basis point decline compared to the same period last year. Gross margin was impacted primarily by increased promotional activity during the quarter, coupled with the continued growth in both online and major appliances.

SG&A expenses for the quarter were down $37 million to $925 million, or 23.4 % of sales, representing a 70 basis point improvement from last year. These savings were primarily driven by lower incentive compensation and store controllable costs.

For the fourth quarter, the Company delivered a $323 million improvement in net income over the prior year to $192 million or $0.61 per share. Adjusted earnings improved $81 million to $0.64 per share for the fourth quarter this year compared to $0.39 per share last year. Adjusted earnings excludes charges primarily associated with restructuring costs, supplemental retirement plans mark-to-market adjustments and the tax impact resulting from other comprehensive income allocation.

EBITDA improved $288 million to $427 million for the quarter, including the $62 million gain on the home office sale, a 207 % improvement from the same period last year. Adjusted EBITDA for the quarter improved $68 million or 18 % to $449 million.

Full Year Results

For the full year 2016, JCPenney reported net sales of $12.5 billion compared to $12.6 billion in 2015, a (0.6) % decrease. Comparable store sales were flat for the year.

For the year, gross margin decreased 30 basis points to 35.7 % from 36.0 % in the prior year.

SG&A expenses for the full year decreased $237 million to $3.5 billion, or 28.2 % of sales, representing a 170 basis point improvement from last year. These savings were primarily driven by lower incentive compensation, store controllable costs, lower corporate overhead and more efficient advertising spend.

For the full year, the Company delivered a $514 million improvement in net income over the prior year to $1 million or $0.00 per share compared to ($1.68) per share last year. Adjusted earnings per share improved to $0.08 per share for the year compared to ($1.03) per share last year.

EBITDA improved $477 million, including the $62 million gain on the home office sale, to $1.0 billion for the year, a 91 % improvement compared to last year. Adjusted EBITDA for the year improved $294 million to $1.0 billion, a 41 % improvement versus last year.

Inventory at year-end was $2.85 billion, an increase of 4.9% compared to last year-end. Approximately 370 basis points of the increase was driven by floor samples for appliance showrooms and higher inventory levels to support the Company’s continued investment in new Sephora shops. Other basic replenishment inventory accounted for an additional 260 basis points of the increase in inventory. These increases were partially offset by decreases in fashion and seasonal apparel and other inventory levels.

A reconciliation of GAAP to non-GAAP financial measures is included in the schedules accompanying the consolidated financial statements in this release.

Outlook

The Company’s 2017 full year guidance, which includes the expected impact of store closures, is as follows:

  • Comparable store sales: expected to be -1% to +1%;
  • Gross margin: expected to be up 20 to 40 basis points versus 2016;
  • SG&A dollars: expected to be down 1 to 2% versus 2016;
  • Adjusted earnings per share1: expected to be $0.40 to $0.65.

1 A reconciliation of non-GAAP forward-looking projections to GAAP financial measures is not available as the nature or amount of potential adjustments, which may be significant, cannot be determined at this time.

(Editor’s Note: This morning, JCPenney, Inc. also issued a separate news release announcing plans to optimize retail operations, advance growth and drive profitability)

Fourth Quarter and Full Year Earnings Conference Call Details

At 8:30 a.m. ET today, the Company will host a live conference call conducted by chairman and chief executive officer Marvin R. Ellison and chief financial officer Ed Record. Management will discuss the Company’s performance during the quarter and take questions from participants. To access the conference call, please dial (844) 243-9275, or (225) 283-0394 for international callers, and reference 66598627 conference ID or visit the Company’s investor relations website at http://ir.jcpenney.com. Supplemental slides will be available on the Company’s investor relations website approximately 10 minutes before the start of the conference call.

Telephone playback will be available for seven days beginning approximately two hours after the conclusion of the conference call by dialing (855) 859-2056, or (404) 537-3406 for international callers, and referencing 66598627 conference ID.

Investors and others should note that we currently announce material information using SEC filings, press releases, public conference calls and webcasts.  In the future, we will continue to use these channels to distribute material information about the Company and may also utilize our website and/or various social media to communicate important information about the Company, key personnel, new brands and services, trends, new marketing campaigns, corporate initiatives and other matters.  Information that we post on our website or on social media channels could be deemed material; therefore, we encourage investors, the media, our customers, business partners and others interested in our Company to review the information we post on our website as well as the following social media channels:

Any updates to the list of social media channels we may use to communicate material information will be posted on the Investor Relations page of the Company’s website at www.jcpenney.com.

About JCPenney:
J. C. Penney Company, Inc. (NYSE:JCP), one of the nation’s largest apparel and home furnishings retailers, is on a mission to ensure every customer’s shopping experience is worth her time, money and effort. Whether shopping jcp.com or visiting one of over 1,000 store locations across the United States and Puerto Rico, she will discover a broad assortment of products from a leading portfolio of private, exclusive and national brands. Supporting this value proposition is the warrior spirit of over 100,000 JCPenney associates worldwide, who are focused on the Company’s three strategic priorities of strengthening private brands, becoming a world-class omnichannel retailer and increasing revenue per customer. For additional information, please visit jcp.com.

Forward-Looking Statements
This release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “expect” and similar expressions identify forward-looking statements, which include, but are not limited to, statements regarding sales, gross margin, selling, general and administrative expenses, earnings and cash flows. Forward-looking statements are based only on the Company’s current assumptions and views of future events and financial performance. They are subject to known and unknown risks and uncertainties, many of which are outside of the Companys control that may cause the Company’s actual results to be materially different from planned or expected results. Those risks and uncertainties include, but are not limited to, general economic conditions, including inflation, recession, unemployment levels, consumer confidence and spending patterns, credit availability and debt levels, changes in store traffic trends, the cost of goods, more stringent or costly payment terms and/or the decision by a significant number of vendors not to sell us merchandise on a timely basis or at all, trade restrictions, the ability to monetize non-core assets on acceptable terms, the ability to implement our strategic plan including our omnichannel initiatives, customer acceptance of our strategies, our ability to attract, motivate and retain key executives and other associates, the impact of cost reduction initiatives, our ability to generate or maintain liquidity, implementation of new systems and platforms including EMV chip technology, changes in tariff, freight and shipping rates, changes in the cost of fuel and other energy and transportation costs, disruptions and congestion at ports through which we import goods, increases in wage and benefit costs, competition and retail industry consolidations, interest rate fluctuations, dollar and other currency valuations, the impact of weather conditions, risks associated with war, an act of terrorism or pandemic, the ability of the federal government to fund and conduct its operations, a systems failure and/or security breach that results in the theft, transfer or unauthorized disclosure of customer, employee or Company information, legal and regulatory proceedings and the Companys ability to access the debt or equity markets on favorable terms or at all. There can be no assurances that the Company will achieve expected results, and actual results may be materially less than expectations. Please refer to the Company’s most recent Form 10-Q for a further discussion of risks and uncertainties. Investors should take such risks into account and should not rely on forward-looking statements when making investment decisions. Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We do not undertake to update these forward-looking statements as of any future date.

Media Relations:
(972) 431-3400
jcpnews@jcp.com
Follow us @jcpnews

Investor Relations:
(972) 431-5500
jcpinvestorrelations@jcpenney.com

Facebook (https://www.facebook.com/jcp)

Twitter (https://twitter.com/jcpnews).

Source: J. C. Penney Company, Inc.

JCPenney to close two distribution facilities and approximately 130 – 140 stores to optimize its retail operations

PLANO, Texas, 2017-Feb-27 — /EPR Retail News/ — J. C. Penney Company, Inc. (NYSE: JCP) today (Feb. 24, 2017) announced it is implementing a plan to optimize its national retail operations as part of the Company’s successful return to profitability. Under the plan, the Company expects to close two distribution facilities and approximately 130 – 140 stores over the next few months. These strategic decisions will help align the Company’s brick-and-mortar presence with its omnichannel network, thereby redirecting capital resources to invest in locations and initiatives that offer the greatest revenue potential.

“In 2016, we achieved our $1 billion EBITDA target and delivered a net profit for the first time since 2010; however, we believe we must take aggressive action to better align our retail operations for sustainable growth. During the year, it became evident the stores that could fully execute the Company’s growth initiatives of beauty, home refresh and special sizes generated significantly higher sales, and a more vibrant in-store shopping environment,” said Marvin R. Ellison, chairman and chief executive officer of JCPenney. “We believe the relevance of our brick and mortar portfolio will be driven by the implementation of these initiatives consistently to a larger percent of our stores. Therefore, our decision to close stores will allow us to raise the overall brand standard of the Company and allocate capital more efficiently.”

“We understand that closing stores will impact the lives of many hard working associates, which is why we have decided to initiate a voluntary early retirement program for approximately 6,000 eligible associates. By coordinating the timing of these two events, we can expect to see a net increase in hiring as the number of full-time associates expected to take advantage of the early retirement incentive will far exceed the number of full-time positions affected by the store closures,” added Ellison.

“We believe closing stores will also allow us to adjust our business to effectively compete against the growing threat of online retailers. Maintaining a large store base gives us a competitive advantage in the evolving retail landscape since our physical stores are a destination for personalized beauty offerings, a broad array of special sizes, affordable private brands and quality home goods and services. It is essential to retain those locations that present the best expression of the JCPenney brand and function as a seamless extension of the omnichannel experience through online order fulfillment, same-day pick up, exchanges and returns,” said Ellison.

“While many pure play e-commerce companies are experiencing dramatically increasing fulfillment costs, we are pleased with the double digit growth of jcpenney.com and how leveraging our brick and mortar locations is enabling us to offset the last-mile delivery cost. We believe the future winners in retail will be the companies that can create a frictionless interaction between stores and e-commerce, while leveraging physical locations to minimize the growing operational costs of delivery. In fact, in 2016 approximately 75% of all online orders touched a physical store. Even with a reduced store count, JCPenney is competitively positioned to deliver a differentiated department store model that meets the expectations of a digital world with an inspiring, tangible shopping environment,” Ellison added.

As a result of the store actions, JCPenney will close a distribution center located in Lakeland, Fla. in early June, at which time operations will transfer to the Company’s logistics facility in Atlanta as part of a strategic effort to streamline store support services. The Company also is in the process of selling its supply chain facility in Buena Park, Calif. in an effort to monetize a lucrative real estate asset.

Associates who will be impacted by the store and distribution center closures will receive separation benefits, which includes assistance identifying other employment opportunities and outplacement services such as resume writing and interview preparation.

Eligibility for the Voluntary Early Retirement Program (VERP) will generally include home office, stores and supply chain personnel who met certain criteria related to age and years of service as of Jan. 31. Approximately 6,000 associates are eligible for the program. Current costs and future savings will be based on the number of associates who accept on or before March 17 when the consideration period expires. The Company’s qualified pension plan will remain in a well-funded status post VERP. No cash contributions to the pension plan are anticipated for the foreseeable future. Charges related to the VERP, of which the vast majority will be non-cash, will be reported in the Company’s first quarter fiscal 2017 results.

FINANCIAL IMPACT
The total store closures represent approximately 13 – 14 % of the Company’s current store portfolio, less than 5% of total annual sales, less than 2% of EBITDA and 0% of net income. The stores identified for closure either require significant capital to achieve the Company’s new brand standard or are minimally cash flow positive today relative to the Company’s overall consolidated average. Comparable sales performance for the closing stores was significantly below the remaining store base and these stores operate at a much higher expense rate given the lack of productivity. Once cycled, these closures are expected to be net income neutral.

The annual cost savings resulting from these strategic decisions, primarily occupancy, payroll, home office support, corporate administration and other store-related expenses, are estimated at approximately $200 million. During the first half of 2017, the Company expects to record an estimated pre-tax charge of approximately $225 million, primarily lease termination obligation expenses, non-cash asset impairments and transition costs, in connection with this initiative.

The Company plans to release a full list of planned closures in mid-March pending notification of all affected personnel. Nearly all impacted stores are expected to close in the second quarter of 2017.

“I have a deep appreciation and respect for our associates who are on the front lines working tirelessly to serve our customers every day. Closing a store is never an easy decision, especially given the local impact on valued employees and our most loyal shoppers,” said Ellison. “While any actions that reduce or exclude our presence in communities across the country is always difficult, it is essential that JCPenney continues to evolve in order to achieve long-term growth and profitability and deliver on shareholder value.”

About JCPenney:
J. C. Penney Company, Inc. (NYSE:JCP), one of the nation’s largest apparel and home furnishings retailers, is on a mission to ensure every customer’s shopping experience is worth her time, money and effort. Whether shopping jcp.com or visiting one of over 1,000 store locations across the United States and Puerto Rico, she will discover a broad assortment of products from a leading portfolio of private, exclusive and national brands. Supporting this value proposition is the warrior spirit of over 100,000 JCPenney associates worldwide, who are focused on the Company’s three strategic priorities of strengthening private brands, becoming a world-class omnichannel retailer and increasing revenue per customer. For additional information, please visit jcp.com.

Forward-Looking Statements
This release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “expect” and similar expressions identify forward-looking statements, which include, but are not limited to, statements regarding sales, gross margin, selling, general and administrative expenses, earnings and cash flows. Forward-looking statements are based only on the Company’s current assumptions and views of future events and financial performance. They are subject to known and unknown risks and uncertainties, many of which are outside of the Companys control that may cause the Company’s actual results to be materially different from planned or expected results. Those risks and uncertainties include, but are not limited to, general economic conditions, including inflation, recession, unemployment levels, consumer confidence and spending patterns, credit availability and debt levels, changes in store traffic trends, the cost of goods, more stringent or costly payment terms and/or the decision by a significant number of vendors not to sell us merchandise on a timely basis or at all, trade restrictions, the ability to monetize non-core assets on acceptable terms, the ability to implement our strategic plan including our omnichannel initiatives, customer acceptance of our strategies, our ability to attract, motivate and retain key executives and other associates, the impact of cost reduction initiatives, our ability to generate or maintain liquidity, implementation of new systems and platforms including EMV chip technology, changes in tariff, freight and shipping rates, changes in the cost of fuel and other energy and transportation costs, disruptions and congestion at ports through which we import goods, increases in wage and benefit costs, competition and retail industry consolidations, interest rate fluctuations, dollar and other currency valuations, the impact of weather conditions, risks associated with war, an act of terrorism or pandemic, the ability of the federal government to fund and conduct its operations, a systems failure and/or security breach that results in the theft, transfer or unauthorized disclosure of customer, employee or Company information, legal and regulatory proceedings and the Companys ability to access the debt or equity markets on favorable terms or at all. There can be no assurances that the Company will achieve expected results, and actual results may be materially less than expectations. Please refer to the Company’s most recent Form 10-Q for a further discussion of risks and uncertainties. Investors should take such risks into account and should not rely on forward-looking statements when making investment decisions. Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We do not undertake to update these forward-looking statements as of any future date.

Media Relations:
(972) 431-3400
jcpnews@jcp.com
Follow us @jcpnews

Investor Relations:
(972) 431-5500
jcpinvestorrelations@jcpenney.com

Source: J. C. Penney Company, Inc.

J. C. Penney Company, Inc. to release its fourth quarter and full year 2016 financial results on February 24, 2017

PLANO, Texas, 2017-Feb-10 — /EPR Retail News/ — J. C. Penney Company, Inc. (NYSE: JCP) announced today (Feb. 9, 2017) that it will release its fourth quarter and full year 2016 financial results on Friday, February 24, at 7:30 a.m. ET. The news release will be followed by a live conference call and webcast conducted by Chairman and Chief Executive Officer Marvin R. Ellison and Chief Financial Officer Ed Record that will begin at 8:30 a.m. ET.

To access the conference call, please dial (844) 243-9275, or (225) 283-0394 for international callers, and reference 66598627 conference ID or visit the Company’s investor relations website at http://ir.jcpenney.com. Supplemental slides will be available on the Company’s investor relations website approximately 10 minutes before the start of the conference call.

Telephone playback will be available for seven days beginning approximately two hours after the conclusion of the conference call by dialing (855) 859-2056, or (404) 537-3406 for international callers, and referencing 66598627 conference ID.

Investors and others should note that we currently announce material information using SEC filings, press releases, public conference calls and webcasts.  In the future, we will continue to use these channels to distribute material information about the Company and may also utilize our website and/or various social media to communicate important information about the Company, key personnel, new brands and services, trends, new marketing campaigns, corporate initiatives and other matters.  Information that we post on our website or on social media channels could be deemed material; therefore, we encourage investors, the media, our customers, business partners and others interested in our Company to review the information we post on our website as well as the following social media channels:

Facebook (https://www.facebook.com/jcp) and Twitter (https://twitter.com/jcpnews).

Any updates to the list of social media channels we may use to communicate material information will be posted on the investor relations page of the Company’s website at www.jcpenney.com.

About JCPenney:
J. C. Penney Company, Inc. (NYSE:JCP), one of the nation’s largest apparel and home furnishings retailers, is on a mission to ensure every customer’s shopping experience is worth her time, money and effort. Whether shopping jcp.com or visiting one of over 1,000 store locations across the United States and Puerto Rico, she will discover a broad assortment of products from a leading portfolio of private, exclusive and national brands. Supporting this value proposition is the warrior spirit of over 100,000 JCPenney associates worldwide, who are focused on the Company’s three strategic priorities of strengthening private brands, becoming a world-class omnichannel retailer and increasing revenue per customer. For additional information, please visit jcp.com.

Media Relations:
(972) 431-3400
jcpnews@jcp.com

Investor Relations:
(972) 431-5500
jcpinvestorrelations@jcpenney.com

Source: J.C. Penney Corporation, Inc.

JCPenney completes sale of its Home Office campus in Plano, Texas to Dreien Opportunity Partners, LLC for $353 million

JCPenney completes sale of its Home Office campus in Plano, Texas to Dreien Opportunity Partners, LLC for $353 million

 

PLANO, Texas, 2017-Jan-04 — /EPR Retail News/ — J. C. Penney Company, Inc. (NYSE: JCP) announced today (January 3, 2017) that it has completed the sale of its Home Office building and surrounding 45 acres of land in Plano, Texas to Dreien Opportunity Partners, LLC, general partner of Silos Opportunity Partners, LP, for a gross sale price of $353 million before closing and transaction costs. The Company previously announced that upon the transfer of ownership, JCPenney would lease back approximately 65 percent of the building, leaving the remaining square footage available for new tenants. The building lease expense would be offset by a reduction in maintenance costs, property taxes and interest expense as a result of paying down debt with proceeds from the transaction.

“Since we began exploring the sale of our Home Office, we have been quite pleased by the level of interest in the building. Our team reviewed numerous offers and decided that it was most advantageous to select Dreien Opportunity Partners, whose leadership recognizes the building’s long-term potential and has demonstrated tremendous support of the Company as we maintain our Home Office operations within the booming Legacy corridor,” said Marvin R. Ellison, chairman and chief executive officer for JCPenney. “This transaction also represents a significant financial milestone for the Company, as proceeds from the sale give us the opportunity to reduce outstanding debt and make improvements to our workspace, creating a modern and efficient environment that fosters productivity and seamless collaboration.”

Prominently located near the intersection of Dallas North Tollway and State Highway 121, JCPenney has occupied the three-story 1.8 million-square-foot office building as its global headquarters since 1992. CBRE Capital Markets represented the Company in this transaction.

About JCPenney:
J. C. Penney Company, Inc. (NYSE:JCP), one of the nation’s largest apparel and home furnishings retailers, is on a mission to ensure every customer’s shopping experience is worth her time, money and effort. Whether shopping jcp.com or visiting one of over 1,000 store locations across the United States and Puerto Rico, she will discover a broad assortment of products from a leading portfolio of private, exclusive and national brands. Supporting this value proposition is the warrior spirit of over 100,000 JCPenney associates worldwide, who are focused on the Company’s three strategic priorities of strengthening private brands, becoming a world‐class omnichannel retailer and increasing revenue per customer. For additional information, please visit jcp.com.

Forward-Looking Statements
This release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Words such as “expect” and similar expressions identify forward-looking statements, which include, but are not limited to, statements regarding sales, gross margin, selling, general and administrative expenses, earnings and cash flows. Forward-looking statements are based only on the Company’s current assumptions and views of future events and financial performance. They are subject to known and unknown risks and uncertainties, many of which are outside of the Company’s control that may cause the Company’s actual results to be materially different from planned or expected results. Those risks and uncertainties include, but are not limited to, general economic conditions, including inflation, recession, unemployment levels, consumer confidence and spending patterns, credit availability and debt levels, changes in store traffic trends, the cost of goods, more stringent or costly payment terms and/or the decision by a significant number of vendors not to sell us merchandise on a timely basis or at all, trade restrictions, the ability to monetize non-core assets on acceptable terms, the ability to implement our strategic plan including our omnichannel initiatives, customer acceptance of our strategies, our ability to attract, motivate and retain key executives and other associates, the impact of cost reduction initiatives, our ability to generate or maintain liquidity, implementation of new systems and platforms including EMV chip technology, changes in tariff, freight and shipping rates, changes in the cost of fuel and other energy and transportation costs, disruptions and congestion at ports through which we import goods, increases in wage and benefit costs, competition and retail industry consolidations, interest rate fluctuations, dollar and other currency valuations, the impact of weather conditions, risks associated with war, an act of terrorism or pandemic, the ability of the federal government to fund and conduct its operations, a systems failure and/or security breach that results in the theft, transfer or unauthorized disclosure of customer, employee or Company information, legal and regulatory proceedings and the Company’s ability to access the debt or equity markets on favorable terms or at all.  There can be no assurances that the Company will achieve expected results, and actual results may be materially less than expectations.  Please refer to the Company’s most recent Form 10-Q for a further discussion of risks and uncertainties. Investors should take such risks into account and should not rely on forward-looking statements when making investment decisions. Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made.  We do not undertake to update these forward-looking statements as of any future date.

By downloading an image or video appearing in the newsroom, you understand and agree, and hereby represent that: (1) you are either a student of an accredited primary, secondary or higher education institution or a member of the news media; (2) use of the image or video is in connection with a student report, story or an article appearing in newspapers, periodicals, digital publications or television; (3) image or video and rights thereto remain the property of JCPenney; and (4) use of the image or video are not for publication covers, advertising, promotion or otherwise for commercial purposes. Furthermore, use of any and all images or video appearing on this page must each include the notice “Image and video courtesy of JCPenney.” Use of materials copied from this website are at your own risk. You must obtain prior written consent from JCPenney or its affiliate(s) for uses that exceed the above parameters.

Media Relations:
(972) 431-3400
jcpnews@jcp.com

Investor Relations:
(972) 431-5500
jcpinvestorrelations@jcpenney.com

Source: J. C. Penney Company, Inc.

###

J. C. Penney Company announces 3Q financial results

  • Net Loss improves 42 percent over the same period last year
  • Company reaffirms its full year earnings and $1 billion EBITDA guidance

PLANO, Texas, 2016-Nov-12 — /EPR Retail News/ — J. C. Penney Company, Inc. (NYSE: JCP) today (Nov. 11, 2016) announced financial results for its third quarter ended Oct. 29, 2016. Comparable sales were (0.8) % for the third quarter, providing a two-year stack of 5.6 %. Net loss improved 42 % versus the prior year to $(67) million.

“We are pleased to see strong sales performance in the growth initiatives we discussed at our most recent analyst meeting. The results of these initiatives are reflected in a positive sales comp in the month of October, driven by over 200 basis points of comp benefit from our 500 new appliance showrooms,” said Marvin R. Ellison, chairman and chief executive officer. “We view our October sales results – specifically our acceleration in the last two weeks of the month – and the benefit from appliances as examples of what we expect for the balance of the fourth quarter. Despite experiencing softness in apparel sales, we are continuing to improve the bottom line of our business thanks to the commitment and hard work of our over 100,000 Associates.”

Ellison continued, “We are excited about the initiatives we have in place to drive incremental growth during the Holiday Season with our increased appliance penetration, new Sephora locations, free same day pick up for online orders, a strong cadence of promotional events and our new lowest price guarantee. We are also thrilled about delivering a 200 basis point improvement in our private label credit card penetration in the third quarter, which led to our highest penetration in many years. These and other initiatives reinforce our confidence in our ability to achieve $1 billion in EBITDA for 2016.”

For the quarter, Sephora, Home, Salon and Fine Jewelry were the Company’s top performing divisions. Geographically, the Pacific and Northwest were the best performing regions of the country.

For the third quarter, gross margin was 37.2 % of sales, a 10 basis point decline compared to the same period last year.

SG&A expenses for the quarter decreased $59 million to $888 million, or 31.1 % of sales, representing a 160 basis point improvement from last year. These savings were primarily driven by lower corporate overhead, incentive compensation and store controllable costs.

For the third quarter, the Company delivered a 42 % improvement in net loss over the prior year to $(67) million or $(0.22) per share. Adjusted earnings per share improved 54 % to a loss of $(0.21) per share for the third quarter this year compared to a loss of $(0.46) per share last year.

EBITDA improved $36 million to $172 million for the quarter, a 26 % improvement from the same period last year. Adjusted EBITDA improved 57 % to $174 million, a $63 million improvement from the same period last year.

A reconciliation of GAAP to non-GAAP financial measures is included in the schedules accompanying the consolidated financial statements in this release.

Outlook
The Company has updated its 2016 full year guidance as follows:

  • Comparable store sales: expected to now increase 1% to 2%;
  • Gross margin: expected to now be flat versus 2015;
  • SG&A dollars: expected to decrease versus 2015;
  • EBITDA1: expected to be $1 billion;
  • Adjusted earnings per share1: expected to be positive;
  • Free cash flow1: expected to improve versus 2015

1 A reconciliation of non-GAAP forward-looking projections to GAAP financial measures is not available as the nature or amount of potential adjustments, which may be significant, cannot be determined at this time.

Third Quarter Earnings Conference Call Details
At 8:30 a.m. ET today, the Company will host a live conference call conducted by chairman and chief executive officer Marvin R. Ellison and chief financial officer Ed Record. Management will discuss the Company’s performance during the quarter and take questions from participants. To access the conference call, please dial (844) 243-9275, or (225) 283-0394 for international callers, and reference 7715351 conference ID or visit the Company’s investor relations website at http://ir.jcpenney.com. Supplemental slides will be available on the Company’s investor relations website approximately 10 minutes before the start of the conference call.

Telephone playback will be available for seven days beginning approximately two hours after the conclusion of the conference call by dialing (855) 859-2056, or (404) 537-3406 for international callers, and referencing 7715351 conference ID.

Investors and others should note that we currently announce material information using SEC filings, press releases, public conference calls and webcasts.  In the future, we will continue to use these channels to distribute material information about the Company and may also utilize our website and/or various social media to communicate important information about the Company, key personnel, new brands and services, trends, new marketing campaigns, corporate initiatives and other matters.  Information that we post on our website or on social media channels could be deemed material; therefore, we encourage investors, the media, our customers, business partners and others interested in our Company to review the information we post on our website as well as the following social media channels:

Facebook (https://www.facebook.com/jcp) and Twitter (https://twitter.com/jcpnews).

Any updates to the list of social media channels we may use to communicate material information will be posted on the Investor Relations page of the Company’s website at www.jcpenney.com

About JCPenney:
J. C. Penney Company, Inc. (NYSE:JCP), one of the nation’s largest apparel and home furnishings retailers, is on a mission to ensure every customer’s shopping experience is worth her time, money and effort. Whether shopping jcp.com or visiting one of over 1,000 store locations across the United States and Puerto Rico, she will discover a broad assortment of products from a leading portfolio of private, exclusive and national brands.  Supporting this value proposition is the warrior spirit of over 100,000 JCPenney associates worldwide, who are focused on the Company’s three strategic priorities of strengthening private brands, becoming a world-class omnichannel retailer and increasing revenue per customer. For additional information, please visit jcp.com.

Forward-Looking Statements
This release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Words such as “expect” and similar expressions identify forward-looking statements, which include, but are not limited to, statements regarding sales, gross margin, selling, general and administrative expenses, earnings and cash flows.  Forward-looking statements are based only on the Company’s current assumptions and views of future events and financial performance. They are subject to known and unknown risks and uncertainties, many of which are outside of the Company’s control that may cause the Company’s actual results to be materially different from planned or expected results. Those risks and uncertainties include, but are not limited to, general economic conditions, including inflation, recession, unemployment levels, consumer confidence and spending patterns, credit availability and debt levels, changes in store traffic trends, the cost of goods, more stringent or costly payment terms and/or the decision by a significant number of vendors not to sell us merchandise on a timely basis or at all, trade restrictions, the ability to monetize non-core assets on acceptable terms, the ability to implement our strategic plan including our omnichannel initiatives, customer acceptance of our strategies, our ability to attract, motivate and retain key executives and other associates, the impact of cost reduction initiatives, our ability to generate or maintain liquidity, implementation of new systems and platforms including EMV chip technology, changes in tariff, freight and shipping rates, changes in the cost of fuel and other energy and transportation costs, disruptions and congestion at ports through which we import goods, increases in wage and benefit costs, competition and retail industry consolidations, interest rate fluctuations, dollar and other currency valuations, the impact of weather conditions, risks associated with war, an act of terrorism or pandemic, the ability of the federal government to fund and conduct its operations, a systems failure and/or security breach that results in the theft, transfer or unauthorized disclosure of customer, employee or Company information, legal and regulatory proceedings and the Company’s ability to access the debt or equity markets on favorable terms or at all.  There can be no assurances that the Company will achieve expected results, and actual results may be materially less than expectations.  Please refer to the Company’s most recent Form 10-K for a further discussion of risks and uncertainties. Investors should take such risks into account and should not rely on forward-looking statements when making investment decisions. Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made.  We do not undertake to update these forward-looking statements as of any future date.

Media Relations:
(972) 431-3400
jcpnews@jcp.com

Investor Relations:
(972) 431-5500
jcpinvestorrelations@jcpenney.com

Source: J. C. Penney Company, Inc.

J. C. Penney Company announces election of Paul Brown, CEO of Arby’s Restaurant Group to its board of directors

J. C. Penney Company announces election of Paul Brown, CEO of Arby’s Restaurant Group to its board of directors
J. C. Penney Company announces election of Paul Brown, CEO of Arby’s Restaurant Group to its board of directors

 

PLANO, Texas, 2016-Sep-23 — /EPR Retail News/ — J. C. Penney Company, Inc. (NYSE: JCP) today (Sept. 21, 2016)  announced the election of Paul Brown, chief executive officer of Arby’s Restaurant Group, Inc., to its board of directors. With extensive experience in the food service, hospitality, e-commerce and consulting industries, Brown has a proven track record of improving the performance of leading global and franchise brands.

“Paul is credited for building the financial performance at several global brands by understanding the importance of attracting a new generation of customers as the primary means for sustainable growth,” said Marvin R. Ellison, chairman and chief executive officer of JCPenney. “His broad expertise makes him an excellent addition to our board as JCPenney continues delivering lasting customer loyalty through value, exclusive shopping experiences and enhanced omnichannel execution.”

“I’m honored to join the board of directors at JCPenney – a Company with a rich history of meeting the needs of an ever-changing American consumer,” Brown added. “It’s a privilege to work with a team that understands the need for a fully integrated online and in-store experience, while staying true to its founding values of excellent service and quality merchandise.”

Brown has spent three years leading Arby’s Restaurant Group, Inc., a company operating and franchising more than 3,300 restaurant locations worldwide. He is responsible for a successful brand revitalization at Arby’s, focusing on company culture, customer service, and new brand positioning and marketing campaigns. Prior to Arby’s, Brown served as president, brands and commercial services at Hilton Worldwide, a hospitality company with more than 4,700 hotels, resorts and timeshare properties. Prior to that, Brown served as president of Expedia North America and Expedia Inc.’s Partner Services Group at Expedia, Inc., the world’s largest online travel company, and was also partner at McKinsey & Co. consulting. Brown currently serves on the board of directors at H&R Block, Inc. and Lindblad Expeditions Holdings, Inc., and is a member of the Georgia Tech Foundation’s board of trustees.

Brown has a B.A. degree in business administration and management from Georgia Institute of Technology, and an MBA in marketing and finance from Northwestern University. In June, he was named recipient of an EY Entrepreneur of The Year® 2016 Award in the Southeast.

About JCPenney:
J. C. Penney Company, Inc. (NYSE:JCP), one of the nation’s largest apparel and home furnishings retailers, is on a mission to ensure every customer’s shopping experience is worth her time, money and effort. Whether shopping jcp.com or visiting one of over 1,000 store locations across the United States and Puerto Rico, she will discover a broad assortment of products from a leading portfolio of private, exclusive and national brands. Supporting this value proposition is the warrior spirit of over 100,000 JCPenney associates worldwide, who are focused on the Company’s three strategic priorities of strengthening private brands, becoming a world‐class omnichannel retailer and increasing revenue per customer. For additional information, please visit jcp.com.

Media Relations:
(972) 431-3400
jcpnews@jcp.com
follow us at @jcpnews

Investor Relations:
(972) 431-5500
jcpinvestorrelations@jcpenney.com

Source: J. C. Penney Company, Inc.

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J. C. Penney announces the appointment of Marvin R. Ellison as its new chairman

PLANO, Texas, 2016-Jul-26 — /EPR Retail News/ — The Board of Directors of J. C. Penney Company, Inc. (NYSE: JCP) has appointed Chief Executive Officer Marvin R. Ellison to the additional position of Chairman, effective August 1, 2016. Mr. Ellison succeeds Myron E. (Mike) Ullman, III who will be retiring in accordance with the transition plan that the Company outlined in 2014.

Mr. Ullman said, “I am delighted that the board has appointed Marvin as Chairman. Over the past year and a half, he has proven himself to be the right leader for our Company, as we have made significant progress in implementing the changes needed to rebuild JCPenney into a successful, modern retailer with a profitable and sustainable business. It’s been a privilege to work closely with Marvin, and I am pleased to know that this Company is in good hands for the future.”

Mr. Ellison said, “It is an honor to succeed Mike as the next Chairman of JCPenney. Mike has demonstrated great leadership, twice as CEO, and for the past year as our Executive Chairman. For someone who started his retail career as a $4.35 per hour store security officer, it is a blessing and an honor to be named Chairman of JCPenney. I look forward to continuing to work with our talented board and management team as we continue to take the steps necessary to drive the resurgence of JCPenney.”

Longtime retail executive Ronald W. Tysoe, who has served on the board since 2013, will continue as the Company’s Lead Independent Director.

About Marvin R. Ellison
Marvin R. Ellison, 51, has been Chief Executive Officer of J. C. Penney Company, Inc. since August 1, 2015. Mr. Ellison served as President and CEO-Designee of J. C. Penney from November 1, 2014 through July 2015. From August 2008 through October 2014, he served as Executive Vice President – U.S. Stores of The Home Depot, Inc., a home improvement specialty retailer. From June 2002 to August 2008, he served in a variety of operational roles at The Home Depot, including as President – Northern Division and as Senior Vice President – Global Logistics. Prior to joining The Home Depot, Mr. Ellison spent 15 years at Target Corporation in a variety of assets protection and operational roles.

Mr. Ellison serves on the board of directors of FedEx. He is actively involved in philanthropic efforts including mentoring programs aimed at developing inner-city youth. He earned a business administration degree in marketing from the University of Memphis and a Master of Business Administration from Emory University.

About JCPenney:
J. C. Penney Company, Inc. (NYSE:JCP), one of the nation’s largest apparel and home furnishings retailers, is on a mission to ensure every shopping experience is worth the customer’s time, money and effort. Whether shopping jcp.com or visiting one of over 1,000 store locations across the United States and Puerto Rico, customers will discover a broad assortment of products from a leading portfolio of private, exclusive and national brands.  Supporting this value proposition is the warrior spirit of over 100,000 JCPenney associates worldwide, who are focused on the Company’s three strategic priorities of strengthening private brands, becoming a world-class omnichannel retailer and increasing revenue per customer. For additional information, please visit jcp.com.

Forward-Looking Statements
This release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Words such as “expect” and similar expressions identify forward-looking statements, which include, but are not limited to, statements regarding sales, gross margin, selling, general and administrative expenses, earnings and cash flows.  Forward-looking statements are based only on the Company’s current assumptions and views of future events and financial performance. They are subject to known and unknown risks and uncertainties, many of which are outside of the Company’s control that may cause the Company’s actual results to be materially different from planned or expected results. Those risks and uncertainties include, but are not limited to, general economic conditions, including inflation, recession, unemployment levels, consumer confidence and spending patterns, credit availability and debt levels, changes in store traffic trends, the cost of goods, more stringent or costly payment terms and/or the decision by a significant number of vendors not to sell us merchandise on a timely basis or at all, trade restrictions, the ability to monetize non-core assets on acceptable terms, the ability to implement our strategic plan including our omnichannel initiatives, customer acceptance of our strategies, our ability to attract, motivate and retain key executives and other associates, the impact of cost reduction initiatives, our ability to generate or maintain liquidity, implementation of new systems and platforms including EMV chip technology, changes in tariff, freight and shipping rates, changes in the cost of fuel and other energy and transportation costs, disruptions and congestion at ports through which we import goods, increases in wage and benefit costs, competition and retail industry consolidations, interest rate fluctuations, dollar and other currency valuations, the impact of weather conditions, risks associated with war, an act of terrorism or pandemic, the ability of the federal government to fund and conduct its operations, a systems failure and/or security breach that results in the theft, transfer or unauthorized disclosure of customer, employee or Company information, legal and regulatory proceedings and the Company’s ability to access the debt or equity markets on favorable terms or at all.  There can be no assurances that the Company will achieve expected results, and actual results may be materially less than expectations.  Please refer to the Company’s most recent Form 10-Q for a further discussion of risks and uncertainties. Investors should take such risks into account and should not rely on forward-looking statements when making investment decisions. Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made.  We do not undertake to update these forward-looking statements as of any future date.

Media Relations:
(972) 431-3400
jcpnews@jcp.com

Investor Relations:
(972) 431-5500
jcpinvestorrelations@jcpenney.com

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J. C. Penney announces the appointment of Marvin R. Ellison as its new chairman
J. C. Penney announces the appointment of Marvin R. Ellison as its new chairman

 

Source: J.C.Penney