JCPenney 2015 Annual Report Download - page 3

Table of Contents
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J. C. Penney Company, Inc. is a holding company whose principal operating subsidiary is J. C. Penney Corporation, Inc. (JCP). JCP was incorporated in
Delaware in 1924, and J. C. Penney Company, Inc. was incorporated in Delaware in 2002, when the holding company structure was implemented. The new
holding company assumed the name J. C. Penney Company, Inc. (Company). The holding company has no independent assets or operations, and no direct
subsidiaries other than JCP. Common stock of the Company is publicly traded under the symbol “JCP” on the New York Stock Exchange. The Company is a
co-obligor (or guarantor, as appropriate) regarding the payment of principal and interest on JCP’s outstanding debt securities. The guarantee by the Company
of certain of JCP’s outstanding debt securities is full and unconditional. The holding company and its consolidated subsidiaries, including JCP, are
collectively referred to in this Annual Report on Form 10-K as “we,” “us,” “our,” “ourselves,” “Company” or “JCPenney.”
Since our founding by James Cash Penney in 1902, we have grown to be a major retailer, operating 1,021 department stores in 49 states and Puerto Rico as of
January 30, 2016. Our fiscal year ends on the Saturday closest to January 31. Unless otherwise stated, references to years in this report relate to fiscal years,
rather than to calendar years. Fiscal year 2015 ended on January 30, 2016; fiscal year 2014 ended on January 31, 2015; and fiscal year 2013 ended on
February 1, 2014. Each consisted of 52 weeks.
Our business consists of selling merchandise and services to consumers through our department stores and our website at jcpenney.com, which utilizes fully
optimized applications for desktop, mobile and tablet devices. Our department stores and website generally serve the same type of customers, our website
offers virtually the same mix of merchandise as our in store assortment along with other extended categories that are not offered in store, and our department
stores generally accept returns from sales made in stores and via our website. We fulfill online customer purchases by direct shipment to the customer from
our distribution facilities and stores or from our suppliers' warehouses and by in store customer pick up. We sell family apparel and footwear, accessories, fine
and fashion jewelry, beauty products through Sephora inside JCPenney and home furnishings. In addition, our department stores provide our customers with
services such as styling salon, optical, portrait photography and custom decorating.
Based on how we categorized our divisions in 2015, our merchandise mix of total net sales over the last three years was as follows:
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Women’s apparel
25%
26%
26%
Men’s apparel and accessories
22%
22%
22%
Home
12%
12%
11%
Women’s accessories, including Sephora
12%
11%
10%
Children’s apparel
10%
10%
11%
Footwear and handbags
8%
8%
9%
Jewelry
6%
6%
6%
Services and other
5%
5%
5%
100%
100%
100%
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We have developed our strategic framework to focus on the following three pillars:
• private brands;
• omnichannel; and
• revenue per customer.
We believe these three pillars provide the foundation to increase loyalty with our customers and enable the organization to simplify its focus by ensuring that
resources and capital investments are effectively allocated to drive these priorities.
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