Additionally, J. C. Penney will renovate 300 of its stores in the next half decade, including 65 during the coming 12 months. Capital expenditures for the 2007 fiscal year are forecast at $1.2 billion.
"We've had no difficulty working with developers to find off-mall locations," said Myron Ullman III, chairman and chief executive officer, during the company's first-quarter conference call. "We're hitting our metrics on new stores."
During the quarter ended May 5, year-over-year, same-store sales at its just more than 1,000 units rose 2.2% year over year, while total sales were up 3.1% and hit just under $4.4 billion. Operating income shot up 9.7%, reaching $419 million.
Ullman says there has been little change in consumers' behavior despite high fuel prices and a strained housing market. "I think there's plenty of opportunity to attract new customers."
Executives are forecast a same-store sales increase during the coming quarter in the low-to-mid-single percentage points and a total sale rise of in the mid-to-high digits. The retailer is opening 15 stores during the quarter.
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