NEW YORK–At its 2010 analyst/investor conference here yesterday, J.C. Penney announced new five-year operational and financial targets, including expectations to increase sales $5 billion to reach approximately $23 billion in sales by the end of 2014.
This is expected to be driven primarily by comparable store sales growth, the company said.
Gross margin is expected to increase to approximately 40 percent of sales, but total operating expenses should decline as a percent of sales, and operating income is expected to steadily increase over the period and be approximately 9 to 10 percent by 2014.
“We are now focused on taking our transformation to the next level by introducing new initiatives in support of our vision to be America’s favorite shopping destination for great styles at compelling prices,” said Myron Ullman, J.C. Penny chairman and chief executive officer. “As we do this, we intend to drive profitable sales growth, enhance our financial performance and achieve industry leadership.