JC Penney Income Falls More Than 50%
JC Penney Co. Inc. posted net income of $211 million for the fourth quarter, a decrease from $430 million in the prior year.
The direct marketer and retailer reported net sales of $5.8 billion for the quarter ended Jan. 31, a 9.8% decrease from $6.4 billion last year.
The Plano, TX firm said that gross margin declined 160 basis points to 34.6% of sales which it attributed to “pressure from a weak sales environment and increased promotional levels during the holiday selling season.”
The firm posted selling, general and administrative expenses of $1.5 million for the quarter, essentially flat with the prior year.
“Throughout the year, we took steps to significantly reduce our inventories and operating expenses in order to withstand the impact of the economic conditions,” said CEO Myron E. Ullman, in a statement.
