JCPenney FY15 comparable store sales rise 4.5 percent

J. C. Penney Company reported comparable store sales grew 4.1 percent for the fourth quarter and 4.5 percent for the full year. The company said that combination of strong sales growth, accelerated gross margins and disciplined expense reduction resulted in full year adjusted EBITDA of 715 million dollars, a 435 million dollars increase.

"We are very pleased with our performance for the fourth quarter and full year. Our focus on private brands, omni-channel and revenue per customer is clearly resonating as we continue to win market share in a competitive environment. Building on the momentum of 2015, and the positive trends of the mid-tier US customer, we now expect positive adjusted earnings in 2016, and EBITDA of one billion dollars," said Marvin R. Ellison, Chief Executive Officer of JCPenny.

Positive fourth quarter and full-year results

For the fourth quarter, which included a successful holiday season, JCPenney reported net sales of 4 billion dollars compared to 3.9 billion dollars in the fourth quarter of 2014. Home, Sephora, Footwear, and Handbags were the company's top performing merchandise divisions during the quarter. Geographically, all regions delivered comp sales gains over the same period last year with the best performance in the western and north eastern regions of the country.

For the full year 2015, JCPenney reported net sales of 12.6 billion dollars compared to 12.3 billion dollars in 2014, a 3 percent increase.

For the fourth quarter, gross margin improved 30 basis points to 34.1 percent and adjusted EBITDA was 381 million dollars, a 108 million dollars or 40 percent improvement from the same period last year. Adjusted earnings per share were 0.39 dollar and adjusted net income was 121 million dollars, an improvement of 108 million dollars or 831 percent.

For the year, gross margin increased 120 basis points to 36 percent and adjusted EBITDA was 715 million dollars, a 435 million dollars or 155 percent improvement from last year. Adjusted net loss improved 463 million dollars to 315 million dollars, or 1.03 dollars per share for the year.

Announces growth in outlook for 2016

The company for its 2016 full year expects comparable store sales to increase 3 percent to 4 percent, gross margin to increase 40 to 60 basis points versus 2015, EBITDA to be one billion dollars and adjusted earnings per share to be positive versus 2015.