J.C. Penny Q1 profit up 6.7%; raises outlook

Plano, Texas -- J.C. Penney Co. reported Monday that its first-quarter net income rose 6.7% amid cost-cutting and improved sales. The department store chain also raised its full-year earnings profit guidance.



The company on Monday reported net income of $64 million for the three months ended April 30, up from $60 million in the same period last year.



Revenue edged up 0.4% to $3.94 billion, from $3.93 billion. Same-stores sales increased 3.8% fueled by its exclusive brands such as Liz Claiborne, Worthington and MNG by Mango. Overall, the strongest merchandise results were in women's apparel and accessories and children's apparel. Geographically, the best performance was in the southwest region of the country.



"We are successfully implementing our merchandising initiatives, with strong gains in both our men's and women's apparel businesses," CEO Myron E. Ullman III said in a statement. "Additionally, the steps we have taken to manage our expenses position us to increase the flow-through of sales to the bottom line."



In one of its previously announced cost-cutting moves, J.C. Penney is in the stages of winding down its catalog business. Ullman promised more cost savings, including trimming marketing expenses and streamlining sourcing operations. The company expects to save about $25 million to $30 million by 2013, with about half of that in 2012.