J.C. Penney's 3Q profit rises on exclusives

J.C. Penney reported Friday that its earnings nearly doubled in the third quarter, as the department store retailer says it saw strong reception to new exclusive brands such as Liz Claiborne and MNG by Mango.  

The company also offered an upbeat profit outlook for the holiday quarter.

The department store chain said its net income was $44 million, or 19 cents per share, in the quarter ended Oct. 30. That compares with $27 million, or 11 cents per share, in the year-ago period.

Revenue reached $4.19 billion, up from $4.18 billion in the same period last year. Revenue at stores opened at least a year rose 1.9 percent. The measure is a key indicator of a retailer’s health.   

Analysts surveyed by Thomson Reuters expected profit of 17 cents
per share on revenue of $4.25 billion for the period.   

“We planned for our new merchandising initiatives to begin to take hold in the second half, and it’s playing out this way,” Myron E. Ullman III, chairman and chief executive, said in a statement. “We have seen clear signs of strength in key businesses, and our Sephora inside J.C. Penney concept continues to surpass our expectations.”

This past fall, Penney became the only U.S. retailer to sell Liz Claiborne and Claiborne women’s wear, except the Isaac Mizrahi-designed Liz Claiborne New York brand, which went to QVC.

Also this fall, Penney became the only department store selling MNG by Mango, a European clothing brand, a big coup as fast-fashion players have been a big threat to department stores.

Penney said that for the fourth quarter it expects to earn in the range of 90 cents to $1 per share. Analysts had expected 94 cents.   

Revenue at stores open at least a year should be up anywhere from 3 percent to 4 percent.