JCPenney Reports Comparable Store Sales Increases...
although at the lower end of expectations...catalog and e-commerce down significantly...
discounters and electronics retailers continue to receive atention....
Department Store Sales Increase 0.6%
Eckerd Drugstore Sales Increase 7.1%
PLANO, Texas, Dec. 6 /PRNewswire/ -- J. C. Penney Company, Inc. (NYSE: JCP - news) reported today that comparable department store sales increased 0.6 percent for the four weeks ended November 24, 2001. The best categories for the month were Home, Men's, and Women's Apparel. It should be noted that the Company's November and December periods reflect comparable weeks for both 2001 and 2000.
Comparable drugstore sales increased 7.1 percent, with a 10.6 percent increase in pharmacy sales and a 0.6 percent increase in front-end sales. Front-end sales were impacted by a slow start to the cold and flu season as well as the elimination of an unprofitable promotional event. Front-end sales were strongest for baby care, household products, cosmetics, candy, and food, snacks, and beverages.
Catalog and e-commerce sales decreased 31.6 percent, reflecting the elimination of catalog participation in retail promotional events. E-commerce sales are included in Catalog, and totaled $30 million in November and $240 million year to date compared to $39 million and $206 million in last year's respective periods.
Although November sales were at the lower end of management's expectations, December represents the most significant month of the fourth quarter. At this time management believes that its previous full year operating earnings guidance of $0.30 to $0.35 per share remains appropriate.
FROM market watch.....
The S&P Retail Index ($RLX: news, chart, profile) is down 1.3 percent to 907.55. There were 28 decliners and 10 advancers. In the last two days, retail stocks had advanced by 1.2 and 3.3 percent, respectively.
J.C. Penney (JCP: news, chart, profile) lost the most ground, down 5 percent to $24.49 while Kmart (KM: news, chart, profile) and Dollar General (DG: news, chart, profile) followed with 4 percent and 4.2 percent decreases, respectively, to $6.01 and $13.69. The top gainer was Circuit City (CC: news, chart, profile), up 11 percent to $20.80.
J.C. Penney said November sales of almost $2.8 billion came in at the lower end of management's expectations. The performance was 2.8 percent lower than last year's levels. Comparable or same store sales, at locations more than a year old, were up 0.6 percent for J.C. Penney department stores and up 7.1 percent for its Eckerd drugstores. However, catalog and online comp sales dropped 32 percent.
Plano, Texas-based Penney reiterated its full-year operating earnings forecast of between 30 and 35 cents a share.
Kmart's comparable store sales dropped by 2.6 percent and total sales declined by 1.9 percent to $3.3 billion in November. CEO Chuck Conaway said sales fell short of expectations because a cutback in advertising and promotions hurt business more than anticipated. However, he said in a statement that the company has since changed course and experienced "significant" sales increases over the Thanksgiving weekend compared to a year ago.
Dollar General said the chain's same-store sales in November rose by 2.8 percent. Total sales, on a comparable weeks basis, went up by almost 14 percent to $478.8 million. For December, the Goodlettsville, Tenn.-based discounter expects same-store sales to rise by 3 to 5 percent and total sales to increase by 5 to 7 percent. Final results will be released on Jan. 10.
Circuit City shares enjoyed a rally Thursday after the Richmond, Va.-based electronics and vehicle chain said November same-store sales rose by 6 percent. Due to the strength of last month's sales, the company's Circuit City Group electronics business will show a return to profitability when third-quarter earnings results are released on Dec. 18. The company also gave a bullish report on its CarMax business, where both comparable and total sales shot up by 38 percent. CarMax now is expected to earn 17 cents a share in the third quarter, higher than the 14 to 15 cents previously expected, excluding earnings attributed to the Circuit City Group stock.
Bentonville, Ark.-based Wal-Mart (WMT: news, chart, profile) said total net sales for November came to $19 billion, up 12.8 percent from the same period a year ago. Same-store sales for the month increased 4.3 percent. Specifically, total Wal-Mart division sales rose 12.7 percent to $12.4 billion, and same-store sales rose 4.5 percent. For Sam's Club, sales totaled $2.47 billion, an increase of 8.5 percent, and same-store sales increased 4.3 percent. Shares dropped by 1.4 percent to $55.80.
Target (TGT: news, chart, profile) posted a November increase in comparable store sales of 11.4 percent -- but it was still below expectations. "Sales for the corporation were slightly below plan in November," said Bob Ulrich, CEO of Minneapolis-based Target in a statement. He did not elaborate. Net sales rose 19.4 percent to $3.9 billion from $3.3 billion in November. The stock dipped 2 percent to $38.90.
Woes continue at Gap Inc. (GPS: news, chart, profile). On Thursday, the retailer disclosed that November sales were 14 percent lower than last year, totaling $1.2 billion vs. $1.4 billion. Comparable-store sales fell 25 percent. The company blamed the Gap and Old Navy stores for the shortfall. Fourth-quarter losses are now expected to be wider than last quarter's 6-cent per-share loss. Shares are up 7 cents to $13.65.
Deborah Adamson is a reporter for CBS.MarketWatch.com in Los Angeles.
More RETAIL STOCKS |
