3 department store chains ring up increases in profit

Department store chains J.C. Penney Co., Kohl’s Corp. and Nordstrom Inc. reported first-quarter profits Thursday that exceeded analysts’ estimates and raised their full-year earnings forecasts.

J.C. Penney’s net income rose 13% from a year earlier to $238 million, or $1.04 a share. Kohl’s profit climbed 25% to $209 million, or 64 cents a share. Earnings at Nordstrom increased 19% to $156.8 million, or 60 cents a share.

J.C. Penney and Kohl’s beat analysts’ estimates by 1 cent, and Nordstrom was 3 cents ahead of Wall Street’s forecast.

Results at J.C. Penney and Kohl’s were boosted by demand for exclusive lines of clothing, such as Liz Claiborne capri pants at J.C. Penney and jeans by Polo Ralph Lauren at Kohl’s. Nordstrom said women’s clothing and handbags sold well after it added higher-priced fashions from Burberry and Roberto Cavalli.

“The year is off to a strong start,” J.C. Penney Chief Executive Myron Ullman said. New stores are doing “exceedingly well,” he said.

J.C. Penney’s sales rose 3.1% to $4.35 billion. The Plano, Texas-based company tried to appeal to fashion-conscious customers with a Liz & Co. camp shirt that it sold for $30, less than half what a similar item costs on Liz Claiborne’s website.

At Kohl’s, sales rose 12% to $3.57 billion on demand for men’s and children’s clothing.

Nordstrom, the Seattle-based chain of 98 department stores, said revenue gained 9.3% to $1.95 billion. Categories with above-average performance were designer apparel, accessories and women’s apparel, Nordstrom said.

Shares of J.C. Penney rose the most in 11 months, advancing $4.02, or 5.3%, to $79.74. Kohl’s gained $2.20 to $74.16, while Nordstrom added 68 cents to $53.17.

J.C. Penney raised its full-year profit forecast by 5 cents to $5.49 a share, meeting analysts’ estimates.

Kohl’s, based in Menomonee Falls, Wis., raised its full-year profit forecast to as much as $3.87 a share from as much as $3.84.

Nordstrom predicted annual profit of $2.81 to $2.90 a share. In February, it projected annual earnings of as much as $2.84.