Internet sales at J.C. Penney up 30% over Q3 4003
Spurred by web sales that increased nearly 30% in the third quarter over last year’s third quarter, J.C. Penney reported that that third quarter operating profits rose 66% to $346 million compared with $208 million in Q3 2003. In its earnings report, the company identified the Internet as its fastest-growing channel.
Together, catalog and Internet sales increased 3.6% for the quarter over last year while “continuing to provide a significant contribution to operating profit,” the company reported. The company, No. 13 in Internet Retailer’s Top 300 Guide to online retailers, did not break out a separate figure for Internet sales.
For the quarter, operating profit increased to 7.7% of sales, an improvement of 290 basis points over last year. Comparable department store sales increased 2.7% over last year.
“Third-quarter operating profit was significantly higher than our original expectations and I am pleased with the progress we continue to make,” says chairman and CEO Allen Questrom. “Stores are set for the holidays with exciting merchandise assortments supported by powerful marketing. Catalog/Internet continues to show strong sales and a significantly improved profit contribution. Although high energy prices remain a concern for our customer segment, we are encouraged by recent trends.”
Back...
