Postmaster General and CEO Louis DeJoy’s Remarks During Nov. 14, 2023, Postal Service Board of Governors Meeting

Third Quarter of Fiscal 2023 Compared to Third Quarter of Fiscal 2022 *Net sales increased 6.4% to $2.5 billion compared to $2.3 billion, primarily due to increased comparable sales, strong new store performance, and strong growth in other revenue. *Comparable sales (sales for stores open at least 14 months and e-commerce sales) increased 4.5% compared to an increase of 14.6%, driven by a 5.9% increase in transactions and a 1.4% decrease in average ticket. *Gross profit increased 3.0% to $992.1 million compared to $962.8 million. As a percentage of net sales, gross profit decreased to 39.9% compared to 41.2%, primarily due to lower merchandise margin, higher inventory shrink, and higher supply chain costs, partially offset by strong growth in other revenue. *Operating income was $327.2 million, or 13.1% of net sales, compared to $361.9 million, or 15.5% of net sales. *Net income was $249.5 million compared to $274.6 million.

“We’ve made tremendous progress improving our service performance in the past year thanks to investments under our Delivering for America plan and an organization-wide commitment to better serving our customers,” said Louis DeJoy, Postmaster General and CEO. “We are headed in the right direction but there is more work to be done to deliver the reliable service the American people expect and deserve.” Final FY2022 USPS service performance scores showed: *First-Class Mail: 91.0 percent of First-Class Mail delivered on time against the USPS service standard, an 8.3 percentage point improvement from FY21 (82.7 percent). *Marketing Mail: 93.3 percent of Marketing Mail delivered on time against the USPS service standard, a 5.7 percentage point improvement from FY21 (87.6 percent). *Periodicals: 83.7 percent of Periodicals delivered on time against the USPS service standard, a significant 8.1 percentage point increase over FY21 (75.6 percent).

JCPenney’s new ownership group, consisting of Simon Property Group and Brookfield Asset Management, along with strategic partner Authentic Brands Group, have launched a search for a Chief Executive Officer to replace Jill Soltau, who will be exiting the company effective December 31, 2020. The search will seek to identify a leader that is focused on modern retail, the consumer experience, and the goal of creating a sustainable and enduring JCPenney. With a successful track record of turning around retailers and brands and restoring them to profitability, JCPenney’s new ownership group will establish a temporary office of the CEO to include key members of JCPenney’s current leadership team. Stanley Shashoua, Simon Property Group’s Chief Investment Officer, will be appointed interim CEO effective January 1, 2021.