J.C. Penney ups earning expectations due to strong sales

Dallas Business Journal – by Kerri Panchuk Web Reporter
Retailer J.C. Penney Co. has upped its earnings expectations for the first quarter after learning that same-store sales – or sales at stores open for 12 months or more – rose 5.4 percent for the five-week period ending on April 3.
During the same period in 2009, same-store sales fell 7.2 percent.
Plano-based J.C. Penney Co. (NYSE: JCP) reported that sales for the five-week period hit $1.5 billion, up from $1.4 billion a year earlier. That led the company to raise its first-quarter per-share earnings expectations of 20 cents to 24 cents. This is higher than earlier estimates of 16 cents to 20 cents per share.
For March 2010, apparel sales were strong, especially in the children’s division. Home product sales, however, lagged during the period, according to the retailer.
The Southeast region turned in the strongest performance during the period; the Northwest region showed the softest sales.

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Pending Home Sales Rise

By JEFF BATER
WASHINGTON — Americans rushed to sign contracts for previously owned homes in February, signaling a fat tax credit might revive the housing market this spring.

Separately, the Institute for Supply Management’s purchasing managers’ index for nonmanufacturing increased to 55.4 in March. that’s better than 53.0 in February and 53.5 expected. The business activity subindex jumped to 60.0 from 54.8. The employment subindex rose to 49.8 from 48.6, but remains in contractionary territory. A reading over 50 indicates expansion.

Despite snowstorms and joblessness, the National Association of Realtors’ index for pending sales of used homes rose by 8.2% to 97.6, the industry group said Monday.

Economists surveyed by Dow Jones Newswires had expected pending home sales would decline in February by 0.5%.

January pending home sales were revised slightly down, to 90.2 from an originally reported level of 90.4.

The NAR index is based on pending sales of existing homes, including single-family homes and condominiums. A home sale is pending when the contract has been signed but the transaction hasn’t closed. Pending sales typically close within one or two months of signing.

The unexpected increase raised spirits in the housing industry. Home resales had fallen three consecutive times, including a 0.6% drop in February that suggested a fragility of the housing sector.

“The rise in buyer contract activity may signal the early stages of a second surge of home sales this spring,” NAR economist Lawrence Yun said.

The government has enacted two tax credits over the past year to spur home buying. The second one is good through April, and sellers have been hoping for a spring rush.

Year over year, the NAR pending home sales index was 17.3% higher than its level of 83.2 in February 2009.

The tax credit helped sales in 2009, as did low prices and mortgage rates that helped fight the headwinds of high unemployment and tight credit.

In its monthly forecast on the industry, the NAR projected existing-home sales of 5.49 million this year and 5.70 million in 2011. That compares with 5.16 million in 2009.

The median price for an existing home is seen at $177,200 in 2010 and $184,800 in 2011. It was $172,500 in 2009. Mr. Yun said a second sales surge would draw down inventory and stabilize home values.

By region, pending sales in the Northeast rose 9.0% in February and were 18.9% higher than a year earlier.

The Midwest rose 21.8% and was 18.7% higher than a year earlier. Pending sales in the South climbed 9.2% and were 17.5% above February 2009. The West fell 4.8% but were 14.6% higher than the year prior.

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Four local players among prospects expected to attend today’s invite-only workout for Dallas Cowboys

By TODD ARCHER / The Dallas Morning News
tarcher@dallasnews.com

IRVING – The Cowboys will hold their invite-only Dallas Day workouts today at Valley Ranch for prospects from the area, including four players from SMU.

Wide receiver Emmanuel Sanders, running back Shawnbrey McNeal, linebacker Chase Kennemer and defensive back Bryan McCann will be at Valley Ranch today for a workout that has produced players like Patrick Crayton, Jacques Reeves, Brandon Williams and Stephen Hodge.

Unlike last week’s national prospects to the Cowboys’ facility, these players will work out for the team as well as meet with the coaches. The Cowboys are limited to 30 visits from prospects across the country but can bring in an unlimited number of local prospects for a look.

In addition to the SMU attendees, Kansas wide receiver Dezmon Briscoe (Cedar Hill), UCLA linebackers Kyle and Korey Bosworth (Plano West), Texas A&M safety Jordan Pugh (Plano West), Baylor center J.D. Walton (Allen), Oklahoma cornerback Brian Jackson (DeSoto), Oklahoma defensive tackle DeMarcus Granger (Kimball), Oklahoma wide receiver Adron Tennell (Irving), Arizona safety Corey Hall (DeSoto), Iowa State center/guard Reggie Stephens (Rowlett) and TCU tackle Nic Richmond, cornerback Rafael Priest and long snapper Clint Gresham will work out.

TCU defensive end Jerry Hughes is expected to attend but not work out.

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AT&T will take $1B non-cash charge for health care

By BARBARA ORTUTAY
AP Technology Writer

updated 4:49 p.m. CT, Fri., March. 26, 2010
NEW YORK – AT&T Inc. will take a $1 billion non-cash accounting charge in the first quarter because of the health care overhaul and may cut benefits it offers to current and retired workers.

The charge is the largest disclosed so far. Earlier this week, AK Steel Corp., Caterpillar Inc., Deere & Co. and Valero Energy announced similar accounting charges, saying the health care law that President Barack Obama signed Tuesday will raise their expenses. On Friday, 3M Co. said it will also take a charge of $85 million to $90 million.

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Recession didn’t slow Plano residents’ spending

By MATTHEW HAAG / The Dallas Morning News
An economic downturn, a burst real estate bubble and a recession at depths not seen in half a century didn’t stop Plano residents from spending money last year unlike almost any other city nationwide.
Households in Plano, long considered one of America’s wealthiest communities, doled out an average of $56,738 in 2009 on expenses such as department store shopping, health care and restaurants, according to a new study. The figure excludes mortgage or rent payments.
The amount puts Plano fifth in the country in household expenses. Only Austin, which took the top spot ($67,076), ranks higher among Texas cities.
“It’s not a huge surprise,” said Brad Shanklin, president of the Plano Chamber of Commerce. “I’m hoping somewhere along there they are saving money, especially in this economy.”
The study released this week from Bundle, an online company that focuses on expenses and savings trends, offers a peek into the spending habits of Americans. The company compiled the report using credit card transaction information from Citi, an investor in Bundle, as well as federal government data and other research.
Texas, which escaped the worst of the recession, had the most cities near the top of the list. Dallas took the 12th spot ($47,920), followed by Corpus Christi at No. 15 ($46,311) and San Antonio at No. 16 ($46,122). The median household income in the United States barely tops $52,000, according to 2008 census figures.
“We are better off than other parts of the country,” said D’Ann Petersen, an economist at the Federal Reserve Bank in Dallas. “We had pretty strong job losses here as well, but we weren’t in the recession as long.”
The other cities in the top five were Scottsdale, Ariz.; San Jose, Calif.; and Arlington, Va.
New York City and Los Angeles, two metro areas often marked by their hefty personal wealth and lavish spending, landed near the bottom of Bundle’s list, most likely because housing payments weren’t counted.
Bundle’s report portrays Plano households as mostly shunning travel and leisure expenses in favor of shopping at big-box stores and buying lattes at Starbucks. Most months last year, Plano households spent the largest share of their income, about $1,100 per month, on shopping at stores such as Nordstrom and Sam’s Club. The average purchase: $90.
“To me, it says that people, because they aren’t spending as much on housing payments, have more money to spend on other things,” Plano Mayor Phil Dyer said. “It may also be a reflection of people’s confidence in the economy.”
The report notes that Plano households spent nearly $1,000 a month on health care expenses last year. Most of the money went to health insurance – about $400 a month. Meanwhile, travel and leisure expenses topped out last year at an average of $307 in December.
The Bundle report isn’t the first time that Plano’s affluence has put the city in the spotlight. Among cities with more than 250,000 people, the latest census data shows that Plano’s median household income of $84,492 is the nation’s highest.
“We have a highly educated workforce and a tremendous employment center for high-quality jobs,” Dyer said. “Maybe people are feeling a bit more confident that they’ll have a job six months or a year from now.”

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Brick House Tavern + Tap to open in Plano

Leslie Brenner
I can’t wait to check this one out: Brick House Tavern + Tap, scheduled to open next week on West Park Blvd. in Plano, is a “man-centric gathering spot” with all-female “girls-next-door” servers. It’s the third location of a mini-chain (with others in Houston and Humble).
A quick spin around the menu makes me even giddier: There’s a section on it called “roughage.” Sounds like something for The Restaurant Critic’s Diet! Starters include soft pretzels (a guy food if ever there was one) and white meat chicken bites (imagine a big, muscular, macho guy sidling up to the bar to order that!). There’s also “Submissive Baked Potato Soup” (hmmm…), “Man-cave” mac and Cheese, chicken fried steak and “Drunken Chops.”
So, I asked the publicist. Are women allowed? “Yes,” she wrote, “women are definitely welcome!” Yay! We can order “For the Ladies…steamed broccoli or side salad” while our men gorge on Hog Wild Sausage Hoagies and Double-Wide Sloppy Joes.

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Gymnast Nastia Liukin scores deal with J.C. Penney Co.

by Kerri Panchuk Web Reporter
Olympic Gold Medalist Nastia Liukin is partnering with Warner Bros. Consumer Products to sell a brand of apparel for young girls exclusively at J.C. Penney Co.
J.C. Penney Co. (NYSE: JCP) is located in Plano, the same city that’s home to the World Olympic Gymnastics Academy, where Liukin trained for the Olympics.
Liukin will be the face of Supergirl by Nastia, a lifestyle line for girls in the 8 to 12-year age range. The line will launch July 20 — just in time for Penney’s back-to-school season.
Selected as a symbol of girl power, products in Liukin’s line will range from $20 to $38 and feature active fleece, dresses, tunics, knit pants, Supergirl tees, dancewear, fashion leggings and tops.
“Supergirl by Nastia provides our customers an affordable and accessible clothing brand that embodies Nastia’s strong, active and independent lifestyle and we look forward to introducing this brand to our customers this back-to-school season. Fashion is a great way for young girls to express their confidence and individuality and this line will send them back into the classroom in an empowered way,” said Clark McNaught, senior vice president and general merchandise manager of JCPenney’s children’s division.
Liukin is not the first famous face to launch a line at Penney’s this year.
Retailer J.C. Penney Co., has been staging a style comeback with its launch of fashion and jewelry brands sponsored by celebrities, including supermodel Cindy Crawford.

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Is the Easter Bunny bringing a snow shovel?

By Jan Bellamy/jbellamy@acnpapers.com
Snow is falling in Frisco as of 5:30 a.m. Sunday morning, the temperature is 30 degrees, and we await word on whether Eggstravaganzaa declares a snow day.
The city of Frisco delayed the annual egg hunt one day, from Saturday to Sunday, due to the cold and windy weather hitting Frisco Saturday.
The following still appeared on the city’s Web site as of early Sunday morning and we will update you as soon as we hear otherwise:
Weather forecasts show the first day of spring will feel more like winter, so Frisco’s 18th Annual Easter Eggstravaganza planned for tomorrow, March 20, is rescheduled for Sunday, March 21. The event will still be held from 1 p.m. to 4 p.m. at Pizza Hut Park Stadium, located at 6000 West Main St.”
According to the National Weather Services, a 50 percent chance of snow continues today, mainly before 1 p.m.. Cloudy, with a high near 41. Windy, with a northwest wind between 20 and 25 mph, with gusts as high as 30 mph. Total daytime snow accumulation of less than one inch possible.
The Winter Weather Advisory confirms the snow event is expected to taper off early afternoon. Meanwhile, visibility is about one-half mile and elevated highways and bridges are subject to forming slick spots. Use caution if traveling.

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JC Penney

Maria Halkias tells us that sales might be looking up at Plano-based J.C. Penney Co.

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Plano/ Frisco/Collin County

Community leaders continue to debate the fate of the long-delayed Collin County arts hall project following the news that the Frisco City Council may put its financing package back up for voter approval. Frisco leaders are slated to talk about the matter on Monday. Obviously, we’re watching the developments closely.

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