J.C. Penney reports Q4 losses, but web sales double
J.C. Penney Company, Inc. reported a loss of $0.03 per share, before the effects of non-comparable items, for the fourth quarter ended Jan. 27, 2001. Revenue for Q4 dropped 0.8% from $9.83 billion in 2000 to $9.75 billion in 2001. However, for the fiscal year, revenue climbed 0.4% to $32.6 billion, up from $32.5 billion in fiscal 2000. Including the non-comparable items the net loss was $284 million or $1.11 per share. For the fiscal year 2000, net income before the effects of non-comparable items was $0.17 per share, and the net loss was $1.68 per share. E-commerce sales totaled $126 million in the fourth quarter compared with $64 million in last year`s fourth quarter.
Allen Questrom, chairman and chief executive officer said, "While our fourth quarter and fiscal 2000 results were disappointing, free cash flow in 2000 exceeded our plan, and we begin 2001 with approximately $1 billion in cash investments. Many significant changes were initiated in 2000, including a rebuilding of our organization, closing unproductive stores, transitioning to the centralized merchandise process, clearing and streamlining our inventory, and a renewed focus on expense reduction."
Questrom adds, "During 2001, we will be focusing on merchandise assortments, enhanced marketing, and expense reductions. Despite a slowing economic environment, we expect earnings per share to improve in 2001 to the $0.70 to $0.80 range, including the savings from the restructuring program. Although it will be two to five years before we fully restore the profitability of our business to competitive levels, I am confident that incremental progress will continue to be made over the next several years."
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