6:33 AM
Penney profit beats on more exclusives
Addison Ray
NEW YORK | Fri Nov 12, 2010 8:52am EST
NEW YORK (Reuters) - J.C. Penney Co Inc reported a higher-than-expected third-quarter profit as the retailer benefited from exclusive lines which drew shoppers to its department stores, but total sales were hurt by its decision to wind down its "Big Book" catalog business.
Penney posted on Friday net income of $44 million, or 19 cents per share, for the quarter ended October 30, up 63 percent from its profit of $27 million, or 11 cents per share a year ago.
Net sales rose 0.2 percent to $4.19 billion. Same-store sales, or sales at stores open at least a year, rose 1.9 percent.
Analysts on average were expecting a profit of 17 cents per share on sales of $4.25 billion, according to Thomson Reuters I/B/E/S.
Penney, which caters to a more cost-conscious customer than competitor Macy's Inc, forecast same-store sales would be up 3 percent to 4 percent during the holiday quarter, but warned the retail environment would "remain highly promotional."
Last month, activist investor William Ackman took a 16.5 percent stake in the retailer and said he would discuss how to improve the company's performance.
(Reporting by Phil Wahba, editing by Gerald E. McCormick)
Posts
