JCPenney presents 2007-2011 Long-Range Plan to accelerate growth
19 Apr '07
3 min read
• Continued improvement in both gross margin and operating expense ratios throughout the plan period, reaching approximately 40 percent and 28 percent of sales in 2011, respectively.
• Operating income of 12 percent to 12.5 percent of sales in 2011.
• A 16 percent compound annual growth rate in earnings per share for 2008-2011.
• Capital expenditures are planned at $1.275 billion per year for 2008-2011.
• Continued improvement in returns on capital and financial leverage metrics, with a cash position of approximately $1.5 billion in 2011.
New Store Opening Plans:
Management announced that it now expects to open 250 new stores over the next five years, including its first ever store in New York City's Midtown Manhattan. The new 150,000 sq. ft. store will be constructed in conjunction with Vornado Realty Trust's redevelopment of Manhattan Mall. The new store opening plan represents an increase from previous guidance of 150 stores by the end of 2009. Additionally, the Company said it plans to renovate approximately 300 stores by the end of 2011.
Revised First Quarter 2007 Earnings Guidance:
During the meeting, management raised guidance for first quarter 2007 earnings from continuing operations to $1.02 per share from $0.99 per share, with no changes to guidance for the remaining three quarters of the year.
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