J.C. Penney Co. (JCP) said it has created a new growth-brands
division, separate from its core brand, that will include the
launch of two new online retail businesses that will be partnered
with Hearst Corp.'s magazines division.
One of the first programs under the new division will be Clad,
an online menswear platform aimed at men ages 25 to 34, which will
"provide a full assortment of well-curated designer brands in a
savvy digital environment." Another is Gifting Grace, an online
"gifting resource" offering "memorable gift items, compelling
content and convenient tools" for gift-givers, which will target
women from 30 to 54.
Promotional sections in Hearst's magazines and on its websites
will help drive traffic to the two sites. J.C. Penney didn't give
any financial details of the partnerships with Hearst.
J.C. Penney is slated to report fiscal third-quarter results on
Friday. In August, the company said it swung to the black in the
second quarter after booking prior-year pension expenses as overall
sales edged lower. But they rose in the third quarter, J.C. Penney
said last week.
Shares closed at $32.67 on Wednesday and were inactive
premarket. The stock has risen 23% this year.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855;
nathan.becker@dowjones.com