Financials

Earnings roundup: JC Penney, Target, more

FinancialsFeb 26, 2014

Earnings roundup: JC Penney, Target, more

Both J.C. Penney and T.J. Maxx/Marshalls recorded same-store sales increases in the fourth quarter while Target’s quarterly comps fell in the wake of the massive data breach that impacted millions of customers.

New York--Both J.C. Penney and T.J. Maxx/Marshalls recorded same-store sales increases in the fourth quarter while Target’s quarterly comps fell in the wake of the massive data breach that impacted millions of customers.

For struggling J.C. Penney, the 2 percent increase in fourth quarter comps, spurred by a 3 percent increase in November-December sales, represented “solid progress despite (a) challenging retail environment,” and the company’s CEO stated that the most “challenging and expensive” parts of the company’s turnaround are now behind them.

Target, meanwhile, is dealing with soft sales that weren’t helped when hackers got into its computer systems during the holiday shopping season and stole the credit card data of millions of customers nationwide. WWD reported Wednesday that the pressure is mounting on Target’s CEO to fix what ails the retailer.

Below are highlights from the financial results released Wednesday by all three retailers, which are among the nation’s largest sellers of fine jewelry.

J.C. Penney
Same-store sales increased 2 percent year-over-year in the fourth quarter ended Feb. 1 while total sales fell 3 percent, from $3.88 billion to $3.78 billion. Online sales climbed 26 percent year-over-year.

The company said its best-selling categories were home, men’s apparel, women’s accessories and its in-store Sephora shops. 

Operating loss fell from $745 million to $138 million during the quarter.

For the full year, results were not as strong. Same-store sales declined 7 percent while total sales fell from $12.99 billion to $11.86 billion, a 9 percent drop. Internet sales were up 6 percent year-over-year.

Operating loss increased from $1.31 billion to $1.42 billion.

Commenting on the retailer’s results, CEO Myron Ullman III said “J.C. Penney achieved what it set out to do on a number of important fronts in 2013. We stabilized our business, both financially and operationally, and restored our process disciplines, promotions, inventory levels and focus on the customer. As a result, we generated positive comparable store sales in the fourth quarter and ended the year with more than $2 billion in total available liquidity. These important accomplishments reflect the progress we have made in our turnaround, which remains on course heading into 2014.”

For 2014, J.C. Penney said it expects same-store sales to increase in the mid-single digits, a significant improvement in gross margin and to have more than $2 billion in liquidity by year’s end.

Target Corp.
Fourth quarter same-store sales in the U.S.

fell 3 percent year-over-year for Target, dragged down by the late November theft of millions of guests’ credit and debit card data. Total sales dropped 7 percent, from $22.4 billion to $20.9 billion.

RELATED CONTENT: 40M could be impacted by Target data breach

Gross margin slipped slightly, from 27.8 percent to 27.6 percent, due in part to clearance markdowns.

For the year, U.S. same-store sales were down 0.4 percent year-over-year while total sales declined 0.9 percent, from $72 billion to $71.3 billion. Full-year gross margin rate was up slightly, from 29.7 percent to 29.8 percent.

Target opened stores in Canada in 2013 but not until later in 2013, so those stores’ results are not included in the retailer’s year-over-year comparisons.

“During the first half of the fourth quarter, our guest-focused holiday merchandising and marketing plans drove better-than-expected sales. However, results softened meaningfully following our December announcement of a data breach,” said Gregg Steinhafel, Target’s chairman, president and CEO.

He added that the retailer is “encouraged” by the sales trends it has seen in recent weeks.

T.J. Maxx
U.S. same-store sales rose 3 percent year-over-year in the fourth quarter ended Feb. 1 for T.J. Maxx and Marshalls stores, parent company The TJX Companies Inc. said. Total sales in the period were up less than one percent, increasing from $4.99 billion to $5.01 billion.

For the fiscal year, U.S. same-store sales for T.J. Maxx and Marshalls were up 3 percent while total sales rose from $17.01 billion to $17.93 billion, a 5 percent increase.

As whole, the company, which also operates T.J. Maxx stores in Europe and Canada as well as HomeGoods stores, reported a 3 percent year-over-year increase in same-store sales in the fourth quarter while total sales rose 1 percent from $7.72 billion to $7.80 billion.

For the full year, same-store sales were up 3 percent while total sales climbed 6 percent from $25.89 billion to $27.42 billion. 

“In the U.S., Marmaxx and HomeGoods continued their excellent, consistent performance. We also successfully launched TJMaxx.com,” said CEO Carol Meyrowitz. “We delivered these results in a competitive retail environment and despite generally unfavorable weather in many of our regions during the first and fourth quarters. We believe this speaks to the resiliency and flexibility of our off-price model.”

The retailer anticipates same-store sales growth of 1 to 2 percent for the first quarter and fiscal year.

Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

Asian Star’s diamond manufacturing facility in India
SourcingMar 27, 2024
Compliance, Caution, and Concern: The Current Outlook of Indian Diamantaires

There is a willingness to comply with new government-mandated regulations, with an insistence that they should be practical and realistic.

Kira Diam solar plant
Lab-GrownMar 27, 2024
Indian Lab-Grown Diamond Manufacturers Keep Growing

A combination of factors is driving growth in the industry despite the precipitous drop in prices across the board.

Bharat Ratnam, a Mega Common Facilitation Centre (CFC)
SourcingMar 27, 2024
Reinvigorating SEEPZ, the Epicenter of India’s Studded Jewelry Exports

The zone’s modernization will enhance and increase India’s jewelry manufacturing capabilities while aiding small and mid-sized businesses.

Jewelers of America Fly In Washington, D.C.
Brought to you by
How Jewelers of America Represents Your Business

For over 30 years, JA has advocated for the industry, fought against harmful legislation and backed measures that help jewelry businesses.

SRK Empire and SRK House
Policies & IssuesMar 27, 2024
SRK Exports’ Journey Toward Net Zero Impact

By the end of this year, SRK’s diamond manufacturing complexes will achieve net zero emissions, one of an impressive array of achievements.

Weekly QuizMar 21, 2024
This Week’s Quiz
Test your jewelry news knowledge with this short test.
Take the Quiz
Hand holding shopping bags
SurveysMar 27, 2024
Consumer Confidence Held Steady in March

Optimism about the current state of the economy was offset by anxiety around inflation and the political environment.

Bernadette Mack
Policies & IssuesMar 27, 2024
Mercury Free Mining Hires Bernadette Mack

The former WJA executive director is MFM’s new managing director.

BTYB-HoBrothers-updated.png
Brought to you by
The Scalable, Professional, and Effortless Solution for High-Demand Custom Jewelry Retailers

Ho Brothers offers scalable solutions for the future of custom jewelry.

April Is Diamonds Do Good Month
Policies & IssuesMar 27, 2024
Diamonds Do Good Announces Its April Initiative

DDG encourages retailers to educate customers on the positive impact of purchasing natural diamonds.

Tiffany & Co. With Love, Since 1837
MajorsMar 26, 2024
Tiffany & Co. Debuts ‘With Love, Since 1837’ Campaign

Highlighting the most iconic Tiffany collections, it’s inspired by the company’s late window designer, Gene Moore.

National Jeweler columnists Duvall O’Steen and Jen Cullen Williams
ColumnistsMar 26, 2024
Creative Connecting: AI Tools and Tips for Social Media

Jen Cullen Williams and Duvall O’Steen explore how jewelers can save time and money by using AI to analyze engagement and create content.

Nordstrom Men’s Store New York City
MajorsMar 26, 2024
Nordstrom May Go Private, Says Report

The retailer previously turned down an $8.4 billion offer in 2018.

Interior of Miami Lakes Jewelers
IndependentsMar 26, 2024
Miami Lakes Jewelers to Close After 37 Years

The Florida store’s owner Miguel Gonzalez is retiring.

 International Gemological Institute
GradingMar 26, 2024
IGI Announces Tech for ID’ing Lab-Grown Colored Diamonds

The lab stresses the importance of accurate identification, as the difference in price is “substantial.”

Kendra Scott lab-grown diamond jewelry
CollectionsMar 25, 2024
Kendra Scott Debuts Lab-Grown Diamond Fashion Jewelry

The brand also plans to expand its retail footprint from 138 to 200 stores over the next three years.

Instappraise logo NAJA logo
Events & AwardsMar 25, 2024
NAJA, Instappraise Offering Scholarships for Aspiring Jewelry Appraisers

One is reserved for a NAJA member, the other for a non-member.

Carie Lehrke and Megan Mattice
MajorsMar 25, 2024
Borsheims Announces New VP of HR, Assistant Manager

Longtime employees Carie Lehrke and Megan Mattice have received promotions.

My Next Question graphic vintage jewelry webinar
Recorded WebinarsMar 22, 2024
Watch: How to Buy and Sell Vintage Jewelry

Three guests joined National Jeweler and Jewelers of America to discuss trending time periods, spotting reproductions, and more.

Chris Clipper and Robert Lepere
MajorsMar 22, 2024
David Yurman Announces New CFO, Chief People Officer

Chris Clipper and Robert Lepere join the company with 50 years of combined experience.

Nakard pyrite earrings
CollectionsMar 22, 2024
Piece of the Week: Nakard’s Pyrite Earrings

The trendy, metallic earrings wink at classic spring colors.

Stock image of police cars with their lights on
CrimeMar 21, 2024
Sparks Fly as Burglars Lose Safe on California Freeway

JSA said a man and woman pulled the safe out of an Oakland jewelry store but couldn’t quite get it into their van.

Grizzly Mining rough emeralds
SourcingMar 21, 2024
Grizzly Sells 4,145-Carat Emerald for Over $1M

The miner’s March auction generated $19 million.

Helen McCluskey
MajorsMar 21, 2024
Signet Jewelers Names New Board Chair

Helen McCluskey will succeed H. Todd Stitzer when he meets his 12-year term limit in June.

Julia Roberts wearing a Chopard necklace
CollectionsMar 20, 2024
Julia Roberts Co-Designs New Chopard Jewelry Collection

“Chopard x Julia Roberts” showcases the first gems cut from the 6,000-carat-plus “Insofu Emerald."

Gold and diamond Baume & Mercier watch Elvis gave to Dodie Marshall
AuctionsMar 20, 2024
Vintage Baume & Mercier Gifted by Elvis Going Up for Auction

Elvis gave the watch to actress Dodie Marshall after filming “Easy Come, Easy Go.”

Sketch of Suhan Wang necklace design
Events & AwardsMar 20, 2024
See the Winner of GIA’s Design Competition

The Gianmaria Buccellati Foundation Award for Excellence in Jewelry Design was presented to a graduate of the GIA school in Taipei.

Stock image of a gavel and handcuffs
CrimeMar 19, 2024
Jewelry Factory Supervisor Arrested for Allegedly Stealing Precious Metals

The man was charged with money laundering in connection with the theft of gold, silver, and platinum over the course of three years.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy