This excerpt taken from the JCP 10-K filed Apr 4, 2007.
Retail Sales, Net
(1) Includes the effect of the 53rd week in 2006 and 2003. Excluding sales of $204 million for the 53rd week in 2006, total department store sales increased 5.0%. Excluding sales of $152 million for the 53rd week in 2003, total department store sales increased 4.7% for 2004.
(2) Comparable department store sales are presented on a 52-week basis. Comparable department store sales include sales of new and relocated stores, and stores reopened after being closed for an extended period (e.g., stores closed due to 2005 hurricanes), after such stores have been open for 12 full consecutive fiscal months. Stores remodeled and minor expansions not requiring store closure remain in the comparable department store sales calculation.
This excerpt taken from the JCP 10-K filed Apr 6, 2006.
Retail Sales, Net
(1) Excludes the effect of the 53rd week in 2003. Including sales of $152 million for the 53rd week in 2003, total department store sales increased 3.7% and 0.3% for 2004 and 2003, respectively.
(2) Comparable department store sales are presented on a 52-week basis. Comparable department store sales include sales of stores after having been open for 12 full consecutive fiscal months. For 2005, the five stores that were closed for an extended period from the effects of Hurricanes Katrina and Rita are not included in the comparable department store sales calculation. Those stores represented approximately 0.5% of the Companys total 2004 sales. As of January 28, 2006, all but one of these stores had reopened. New and relocated stores, and the reopened stores impacted by the hurricanes, become comparable on the first day of the 13th full fiscal month of operation.
(3) Excludes the effect of the 53rd week in 2003. Including sales of $46 million for the 53rd week in 2003, total Direct sales increased 1.5% and 3.3% for 2004 and 2003, respectively.
Comparable department store sales increased for the fifth consecutive year on a portfolio of largely mature department stores. Department store sales reflect increases in all merchandise divisions in 2005, led by family footwear, womens accessories, fine jewelry and childrens apparel. While the womens apparel division experienced the smallest sales increase, results were strong in both junior and womens sportswear. From a regional perspective, all areas of the country experienced increases in 2005, with the strongest performance in the southeastern and western regions of the country, while the northeast experienced the smallest increase. Sales reflect good customer response to both fashion and basic merchandise and strong sales gains in the Companys key private brands. Department store sales have continued to benefit from positive customer response to the style, quality, selection and value offered in the Companys merchandise assortments, compelling marketing programs and continued improvement in the store shopping experience.
Direct (catalog/Internet) sales, which offer customers multi-channel convenience and a broader merchandise selection complementing that carried in the Companys department stores, increased 3.6% for 2005, compared to a 3.3% increase in 2004 and a 1.5% increase in 2003, all on a 52-week basis. Direct sales continue to reflect a focus on targeted specialty media and the expanded assortments and convenience of the Internet. The Direct channel represented approximately 15% of total net retail sales in each of 2005, 2004 and 2003. Consistent with customer shopping patterns, the Company continually reviews its catalog page counts and circulation to ensure that print catalogs remain productive, while planning for a gradual shift toward a higher level of shopping via the Internet. The Internet channel continues to experience strong sales growth, increasing nearly 28% in 2005 to $1,038 million, compared to $812 million in 2004 and $617 million in 2003. Internet sales represented approximately 37% of total Direct sales for 2005, compared to 30% in 2004 and 23% in 2003.
As part of its 2005-2009 Long Range Plan, the Company has implemented lifestyle merchandising initiatives offering styles that inspire and reflect the lifestyles of its target customers. The Company has identified distinct categories that reflect its customers style preferences conservative, traditional, modern and trendy making JCPenney more relevant to an expanded customer base. The Company will continue to enhance its strong private, exclusive and national brands that develop customer loyalty by focusing its merchandise more closely on each of the customer lifestyles. Additional resources are being focused on each of the major brands to ensure consistency from design and lifestyle marketing to point-of-sale support. The brands launched in 2005 and planned for 2006 are the result of these merchandising initiatives. Private brand sales, including exclusive brands found only at JCPenney, totaled approximately 46%, 42% and 39% of total merchandise sales for 2005, 2004 and 2003, respectively.
In late 2005, the Company introduced a new private brand, a.n.a, a casual weekend apparel line designed for the modern female customer. The Chris Madden for JCPenney Home Collection®, originally launched in the second quarter of 2004, continues to perform well for the Company and has been expanded with new furniture, bedding and window coverings collections. In the first quarter of 2005, the Company launched two new casual dressy brands for women, nicole by Nicole Miller® and W-work to weekend, an extension of the Companys Worthington® private brand. Management is pleased with customer response and sales results for the Companys new merchandise launches as well as the performance of the expanded Chris Madden offerings.
In early 2006, the Company launched Solitude® by Shaun Tomson, a California lifestyle-inspired mens apparel brand, and Rule by Steve Madden in family footwear. The Company introduced the Miss Bisou® clothing collection for juniors, an extension of the Bisou Bisou® womens sportswear line, and Studio by the JCPenney Home Collection, a modern furniture collection. Also in 2006, the Company added the Chris Madden® Hotel Collection, which features silk-blend comforters and 600 thread-count sheets.