JCP » Topics » Total Net Sales

These excerpts taken from the JCP 10-K filed Mar 31, 2009.

Total Net Sales

Our year-to-year change in total net sales is comprised of (a) sales from new stores net of closings and relocations including catalog print media and outlet store sales, referred to as non-comparable store sales and (b) sales of stores opened in both years as well as online sales from jcp.com, referred to as comparable store sales. We consider comparable store sales to be a key indicator of our current performance measuring the growth in sales and sales productivity of existing stores. Positive comparable store sales contribute to greater leveraging of operating costs, particularly payroll and occupancy costs, while negative comparable store sales contribute to de-leveraging of costs. Comparable store sales also have a direct impact on our total net sales and the level of cash flow.

 

($ in millions)    2008     2007  

Total net sales

   $     18,486     $     19,860  
                

Sales percent (decrease)/increase

    

Total net sales

     (6.9 )%     (0.2 )%

Comparable store sales

     (8.5 )%     0.0 %

Sales per gross square foot(1)

   $ 160     $ 177  

(1) Calculation includes the sales of stores that were open for the full fiscal year as of each year end, as well as online sales from jcp.com.

Total net sales in 2008 decreased $1,374 million as a result of a sharp slow down in consumer spending. The decline was mainly attributed to a comparable store sales decline of 8.5% and a decrease, as expected, in catalog print media and outlet store sales in our Direct channel. While comparable store sales decreased, sales from non-comparable stores opened in 2008 and 2007, net of closings, added $434 million. In 2008, we opened 26 net new stores (35 stores, net of 9 closings and relocations) and in 2007 we opened 34 net new stores (50 stores, net of 16 closings and relocations.) Over the course of 2008, the worsening consumer spending environment resulted in reduced sales from lower traffic in our mall stores, which decreased 5.4% from prior year traffic levels. Our off-mall traffic was also down compared to last year but had stronger traffic trends than our mall stores. Consistent with the difficult retail environment and the pronounced decrease in consumer spending, the number of transactions and the number of units sold declined for the year. Geographically, the best performing regions for the year were the central and northwest regions, while the southeast and southwest regions, which were more heavily impacted by declining home values, delivered the weakest performance. Sales of jcp.com, which are included in comparable stores sales, were essentially flat with last year at about $1.5 billion.

Although consumer spending steadily decreased over the year, we continued our leadership position in apparel, bringing style and newness through the launch of several private and exclusive brands. For the year, family shoes, along with women’s apparel and accessories were the best performing divisions. By contrast, and consistent with industry results, fine jewelry and home were the weakest businesses.

 

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Private and exclusive brands found only at JCPenney totaled approximately 52% and 49% of total merchandise sales for 2008 and 2007, respectively.

Total Net Sales

Our year-to-year change in total net sales
is comprised of (a) sales from new stores net of closings and relocations including catalog print media and outlet store sales, referred to as non-comparable store sales and (b) sales of stores opened in both years as well as online sales
from jcp.com, referred to as comparable store sales. We consider comparable store sales to be a key indicator of our current performance measuring the growth in sales and sales productivity of existing stores. Positive comparable store sales
contribute to greater leveraging of operating costs, particularly payroll and occupancy costs, while negative comparable store sales contribute to de-leveraging of costs. Comparable store sales also have a direct impact on our total net sales and
the level of cash flow.

 


















































































($ in millions)  2008  2007 

Total net sales

  $    18,486  $    19,860 
         

Sales percent (decrease)/increase

   

Total net sales

   (6.9)%  (0.2)%

Comparable store sales

   (8.5)%  0.0%

Sales per gross square foot(1FACE="Times New Roman" SIZE="1">)

  $160  $177 

(1) Calculation includes the sales of stores that were open for the full fiscal year as of each year end, as
well as online sales from jcp.com.

Total net sales in 2008 decreased $1,374 million as a result of a sharp slow down in consumer spending. The decline
was mainly attributed to a comparable store sales decline of 8.5% and a decrease, as expected, in catalog print media and outlet store sales in our Direct channel. While comparable store sales decreased, sales from non-comparable stores opened in
2008 and 2007, net of closings, added $434 million. In 2008, we opened 26 net new stores (35 stores, net of 9 closings and relocations) and in 2007 we opened 34 net new stores (50 stores, net of 16 closings and relocations.) Over the course of 2008,
the worsening consumer spending environment resulted in reduced sales from lower traffic in our mall stores, which decreased 5.4% from prior year traffic levels. Our off-mall traffic was also down compared to last year but had stronger traffic
trends than our mall stores. Consistent with the difficult retail environment and the pronounced decrease in consumer spending, the number of transactions and the number of units sold declined for the year. Geographically, the best performing
regions for the year were the central and northwest regions, while the southeast and southwest regions, which were more heavily impacted by declining home values, delivered the weakest performance. Sales of jcp.com, which are included in comparable
stores sales, were essentially flat with last year at about $1.5 billion.

Although consumer spending steadily decreased over the year, we continued our
leadership position in apparel, bringing style and newness through the launch of several private and exclusive brands. For the year, family shoes, along with women’s apparel and accessories were the best performing divisions. By contrast, and
consistent with industry results, fine jewelry and home were the weakest businesses.

 


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Private and exclusive brands found only at JCPenney totaled approximately 52% and 49% of total merchandise sales for 2008
and 2007, respectively.

Total Net Sales

 

($ in millions)    2007     2006  

Total net sales

   $ 19,860     $ 19,903  
                

Sales percent (decrease)/increase

    

Total net sales

     (0.2 )%(1)     6.0 %(1)

Comparable store sales

     0.0 %     4.9 %

Sales per gross square foot(2)

   $ 177     $ 176  

(1) Includes the effect of the 53rd week in 2006. Excluding sales of $254 million for the 53rd week in 2006, total net sales increased 1.1% and 4.6% in 2007 and 2006, respectively.

(2) Calculation includes the sales of stores that were open for the full fiscal year as of each year end, as well as online sales from jcp.com. The 2006 calculation excludes sales of the 53rd week.

Total net sales decreased $43 million, or 0.2%, in 2007, primarily as a result of the 53rd week in 2006 and the expected decline in catalog print media and outlet store sales. Excluding sales of $254 million for the 53rd week of 2006, total net sales increased 1.1%. Comparable store sales, including online sales, were flat with 2006. Sales from non-comparable stores opened in 2007 and 2006, net of closings, were $456 million. In 2007, we opened 34 net new stores (50 stores, net of 16 closings and relocations) and in 2006 we opened 14 net new stores (28 stores, net of 14 closings and relocations.) Comparable store sales were negatively impacted by a decline in JCPenney mall store traffic of approximately 4%, consistent with overall mall traffic trends, while the average unit retail and the number of transactions remained at comparable levels to the prior year. Although sales were soft across most merchandise categories, our best performing categories were women’s and children’s apparel. The weakest sales results were in most home categories, men’s and fine jewelry. Geographically, the western regions reported sales gains during 2007, while decreases were reported in the eastern and central regions of the country.

Private and exclusive brands found only at JCPenney totaled approximately 49% and 48% of total merchandise sales for 2007 and 2006, respectively.

This excerpt taken from the JCP 10-K filed Apr 1, 2008.

Total Net Sales

 

($ in millions)    2007     2006     2005  

Total net sales

   $ 19,860     $ 19,903     $ 18,781  
                        

Sales percent (decrease)/increase

      

Total net sales

     (0.2 )%(1)     6.0 %(1)     3.8 %

Comparable store sales(2)

     0.0  %     4.9 %     4.2 %

Sales per gross square foot(3)

   $ 177     $ 176     $ 167  

(1) Includes the effect of the 53rd week in 2006. Excluding sales of $254 million for the 53rd week in 2006, total net sales increased 1.1% and 4.6% in 2007 and 2006, respectively.

(2) Comparable store sales are presented on a 52-week basis, and include sales from new stores, relocated stores and stores reopened after being closed for an extended period (e.g., stores closed due to natural disasters) after they have been open for 12 full consecutive fiscal months. Stores remodeled and minor expansions not requiring store closure remain in the comparable store sales calculation. Beginning in 2008, the Company changed its sales reporting to include online sales, through jcp.com, in comparable store sales. Comparable store sales presented in the table above have been reclassified for all periods presented to include jcp.com sales.

(3) Calculation includes the sales of stores that were open for the full fiscal year as of each year end, as well as online sales from jcp.com. The 2006 calculation excludes sales of the 53rd week.

 

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Total net sales decreased $43 million, or 0.2%, from $19,903 million in 2006 to $19,860 million in 2007, primarily as a result of the 53rd week in 2006 and the expected decline in catalog print media and outlet store sales. Excluding sales of $254 million for the 53rd week of 2006, total net sales increased 1.1%. New store sales, net of closings, added $456 million in 2007. Comparable store sales, including online sales, were flat with 2006. Comparable store sales were negatively impacted by a decline in JCPenney mall store traffic of approximately 4.0%, consistent with overall mall traffic trends, while the average unit retail and the number of transactions remained at comparable levels to the prior year. Although sales were soft across most merchandise categories, the Company’s best performing categories were women’s and children’s apparel. The weakest sales results were in most home categories, men’s and fine jewelry. Geographically, the western regions reported sales gains during 2007, while decreases were reported in the eastern and central regions of the country.

Total net sales increased $1,122 million, or 6.0%, from $18,781 million in 2005 to $19,903 million in 2006. Comparable store sales increased 4.9% in 2006, driven primarily by an increase in sales transactions, and an increase in online sales of 24%, coupled with positive trends in both units per transaction and average unit retail.

Private and exclusive brands found only at JCPenney, totaled approximately 49%, 48% and 47% of total merchandise sales for 2007, 2006 and 2005, respectively.

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