Plano, TX, February 16, 2006--J.C. Penney Co., on Thursday posted fourth quarter earnings that rose 65%, helped by more full-priced selling during the key holiday season. The results were above analysts expectations.
The company posted net income in the quarter of $551 million, or $2.34 a share, up from $333 million, or $1.17 a share, in the year-ago period.
Fourth-quarter earnings from continuing operations were $1.92 a share, and included a gain of 21 cents a share related to a tax benefit.
Total net sales for the quarter were $6.20 billion, up 4.2%.
Analysts, on average, were expecting fourth-quarter earnings of $1.63 a share on revenue of $6.19 billion, according to Thomson First Call.
"As we look ahead, we recognize that there may be short-term disruptions caused by industry consolidation and that our customer continues to be faced with issues such as high energy prices and changes to consumer credit payment terms," chief executive Myron Ullman said in a statement. "Nevertheless, we are focused on each of the initiatives in our long range plan and capitalizing on the many opportunities that lie before us."
Penney forecast fiscal first-quarter income of about 80 cents a share a share, and full-year earnings in a range of $4.14 to $4.24 a share. At Thomson First Call, analysts have pegged a profit of 79 cents a share for the first quarter, and $4.19 for the year.
Fourth-quarter total department store sales rose 4.2 % and same-department store sales increased 2.6%. Sales were "generally positive throughout the store," Penney said, with the best regional performance in the southeastern and western regions of the country.
During the quarter, catalog/Internet sales rose 3.7%, with online sales surging about 22%. Penney's Internet sales surpassed the $1 billion mark last year.
