J.C. Penney 1Q Profit Falls 50%
Plano, Texas J.C. Penney said a pullback in consumer spending has cut its first-quarter profit in half, and predicts “difficult” conditions for the entire year.
The company reported a 50% drop in quarterly profit on Thursday. Penney also reported a net income of $120 million for its fiscal first quarter ended May 3, compared with $238 million a year earlier.
Total sales fell 5% to $4.13 billion from $4.35 billion.
“Our financial performance in the first quarter was clearly impacted by the weakened consumer environment,” said Myron E. Ullman III, chairman and CEO. “Looking ahead, we will continue to take the necessary actions to align our business plans with the expectation that conditions will remain difficult for the remainder of 2008. Accordingly, inventory will be managed through appropriate pricing actions on existing merchandise and by reducing our future merchandise commitments to better balance our inventory position with expected sales levels.”
Spice Depot snags Wal-Mart global sourcing expert
BURNABY, British Columbia Former Wal-Mart global sourcing and supplier development head John Ryan will join Spice Depot as president of retail development worldwide, the company reported.
“The significance of the appointment of Ryan to our senior management team cannot be underestimated,” says Spice Depot president Danny Ferraro. “John is a true giant in the retail sector, known worldwide for the pivotal role he played in developing global sourcing and supplier development for Walmart.”
Global Sourcing is a Walmart-accredited procurement strategy aimed at leveraging global efficiencies in production.
Ryan began his career with Mercantile Stores where he stayed 20 years, ascending ultimately to the position of evp responsible for merchandising and marketing.
Ryan joined Walmart in 1995 as evp of international merchandising and marketing. He later assumed responsibility for global sourcing and supplier development. He retired from Wal-Mart in 2004.
Socol to retire as head of Barneys
NEW YORK Barneys New York announced today the resignation of Howard Socol as chairman, president and ceo. Socol served in that capacity since January 2001 through a period of significant growth at Barneys and through two changes in ownership of the company.
Mr. Socol stated, “After more than seven of the greatest years of my long career in retail, I felt it was time to take time to enjoy all the opportunities that life affords. I felt strongly about remaining with the company for a short period following the sale to Istithmar as well as through the opening of our Las Vegas flagship. With the sale process well behind us and the Las Vegas location having opened in January of this year, this is the appropriate time to move forward. Barneys is very fortunate to have a fantastic management team that has been together for many years and that has led Barneys to the preeminent place in luxury retailing today.”
During Socol’s tenure with Barneys, the Company initiated an expansion program and has opened four flagship stores, 15 Barneys New York CO-OP stores and two outlet stores. Socol will remain with the company through the end of June.