Penney Intermediate Holdings, which has been operating the JCPenney business, reported a turn to a loss for its fiscal year ended February 1.
According to a filing with the United States Securities and Exchange Commission, net loss was $177 million, and comprehensive loss, including a currency adjustment, was $179 million versus net income of $30 million and comprehensive income of $29 million in the fiscal year earlier.
Net sales were $6.33 billion and total revenues, including credit income, was $6.61 billion versus $6.93 billion and $7.21 billion, respectively, in the year prior, Penney Intermediate Holdings reported. Operating loss was $103 million versus operating income of $104 million, in the year previous.
Year over year, home declined one point in JCPenney’s departmental mix to 17% of sales, while jewelry, handbags and beauty gained one point to 15%. The apparel components of the mix remained steady proportionately.
In early January, JCPenney and SPARC Group announced they would merge to establish a new business, Catalyst Brands. It pairs remaining JCPenney stores with the specialty retail operations of Aéropostale, Brooks Brothers, Eddie Bauer, Lucky Brand and Nautica, among others.
Catalyst Brands launched as a joint venture formed in an all-equity transaction with shareholders being Authentic Brands Group and Shein, as well as Simon Property Group and Brookfield Corp., the two mall operators that acquired JCPenney out of bankruptcy in 2020.
