US-based fashion retailer JCPenney Company Inc. has announced financial results for the first quarter ended April 29, 2017. During the quarter under review, the company reported net sales of US $ 2.7 billion compared to US $ 2.8 billion last year. Comparable store sales were 3.5 per cent for the quarter.
Adjusted net income improved US $ 116 million for the first quarter this year compared to a net loss of US $ 97 million last year. Adjusted net income for the first quarter of 2017 and 2016 includes the sale of operating assets, which totalled US $ 117 million and US $ 8 million, respectively.
EBITDA was US $ 40 million for the first quarter 2017 compared to US $ 176 million for the same period last year. Home, Sephora, Fine Jewellery and Salon were the company’s top performing divisions during the quarter.
SG&A expenses for the quarter declined US $ 29 million to US $ 843 million, or 31.2 per cent of sales. These savings were primarily driven by lower marketing, store controllable costs and incentive compensation.
Marvin R. Ellison, Chairman and Chief Executive Officer commented, “We continue to make encouraging progress in the company’s competitive and financial position despite our top-line performance during the first quarter. While February was a very challenging month for JCPenney and broader retail, we are pleased with our comp store sales for the combined March and April period, which improved significantly versus February. The recent sales trends, combined with the improvement in women’s apparel and our growth initiatives led by Sephora inside JCPenney, jcp.com and major appliances, provide us with the confidence to maintain our sales guidance for the full year.”
