Join The Discussion

 

Trademark closes on 63-acre Waterside site in Fort Worth

Construction begins Oct. 20 on the development, to be anchored by a Whole Foods Market.

read more >

UPDATE: $215M hotel, indoor ski project planned for Grand Prairie

Officials in Grand Prairie are expected later today to announce a $215 million project that will include a Hard Rock Hotel and an indoor ski facility.

read more >

Two Fort Worth council members propose temporary single-family moratorium around TCU

The moratorium would apply to new permits for single-family homes around TCU, and give the city time to figure out what to do with a controversial proposed overlay in several neighborhoods around the university.

read more >

Fresh Ebola fears hit airline stocks

DALLAS (AP) — News that a nurse diagnosed with Ebola flew on a plane full of passengers raised fear among airline investors that the scare over the virus could cause travelers to avoid flying.

read more >

Landscape architect behind several TCU landmarks acquired

The Dallas design firm behind several Texas Christian University projects, as well as Globe Life Park in Arlington and AT&T Stadium, has been acquired by Rvi Planning + Landscape Architecture.

read more >

J.C. Penney posts encouraging sales numbers

 

NEW YORK (AP) – J.C. Penney said a key sales figure rose in its first quarter, offering an encouraging sign for the beleaguered department store operator.

The company, which is based in Plano, Texas, said sales at stores open at least a year rose 6.2 percent in the period, marking the second straight quarterly gain. The figure, a key indicator of health for retailers, had tumbled 16.6 percent in the year-ago period.

Penney's stock surged more than 20 percent to $10.08 in aftermarket trading.

The company has been trying to recover from a botched transformation plan by former CEO Ron Johnson that resulted in massive losses and plunging sales. Johnson, the mastermind behind Apple's retail concept, was ousted in April of last year after 17 months on the job, and the board brought back former CEO Mike Ullman.

Ullman is trying to win back shoppers by restoring sales events and basic merchandise the company ditched under Johnson's tenure in a bid to attract affluent, younger consumers. The efforts have included the discontinuation of some brands, including William Rast and Joe by Joseph Abboud, that were brought in by Johnson but didn't resonate with Penney's middle-income shoppers.

Ullman is also revamping the home area, a key driver of customer traffic, after Johnson's plan to overhaul the section with too many trendy and pricy items didn't sit well with customers.

"It is clear that our efforts to re-merchandise many areas of the store and revamp our messaging to the customer are taking hold," Ullman said in a statement Thursday.

In a conference call with analysts later, however, he noted that "there's still work to be done."

The company also said that going forward it would simplify the way it calculates its sales at stores open at least a year, with sales return estimates and other items no longer being included. Under that new methodology, J.C. Penney said, its sales at stores open at least a year rose 7.4 percent in the period.

Looking ahead, J.C. Penney Co. said it expects sales at established stores to rise in the mid-single digits and gross margin to improve significantly from last year. When asked about a CEO succession plan, Ullman said there's "no major changes on the horizon."

But the company's results still show that it needs to increase how much profit it makes on each item and do more to bring back customers.

For the period ended May 3, the company said, it lost $352 million, or $1.15 per share, which was better than the loss of $1.25 per share analysts expected. A year ago, the lost $1.58 per share.

Revenue rose to $2.8 billion, above the $2.71 billion analysts expected.

< back

Email   email
hide
Ebola
How worried are you about Ebola spreading?