J.C. Penney Co Earnings Call Insights: Shop-in-Shop Performance and Credit Cards

J.C. Penney Co Inc (NYSE:JCP) recently reported its fourth quarter earnings and discussed the following topics in its earnings conference call.

Shop-in-Shop Performance

Brian Nagel – Oppenheimer & Co.: Can you guys hear me?

Ron Johnson – CEO: There we go. Sorry about that everybody. Our apologies. It’s our first time doing this live from Plano. So please go ahead Brian, we will come back to Matt right after this.

Brian Nagel – Oppenheimer & Co.: So the first question I had, Ken you commented at the end of your prepared remarks about the performance of the shop-in-shops, but you didn’t give a specific number. I think you said something about consistent. So in the Q3 report, the number was 33%. So are the shop-in-shops still performing at north of 30%?

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Ken Hannah – CFO: Yeah, I’d go ahead and answer that. Brian, we went through and looking at the shop performance, there’s only a couple dollars per square foot difference quarter-over-quarter in the performance. Until we get a full year’s worth of sales history to establish the curve for those individual shops, we are not willing to share those, it’s kind of like comp store sales, until a store has been opened for a full-year, you don’t really have that comparable. So when we look at the shops, they are outperforming the rest of the store. If I look quarter-to-quarter when we had traffic down 17% and also comp sales down 31.7%, we only had a few dollar per square foot difference in terms of the performance of those shops.

Brian Nagel – Oppenheimer & Co.: Then any comment on the sales performance at your chain or in the shop-in-shops since the fourth quarter end?