J.C. Penney says Macy's lawsuit unlikely to impact results

Fri Mar 21, 2014 6:30pm EDT

Customers ride the escalator at a J.C. Penney store in New York August 14, 2013. REUTERS/Brendan McDermid

Customers ride the escalator at a J.C. Penney store in New York August 14, 2013.

Credit: Reuters/Brendan McDermid

(Reuters) - Department store J.C. Penney Co Inc (JCP.N) said it does not expect the outcome of its pending lawsuit with retailer Macy's Inc (M.N) over a home products deal with Martha Stewart Living Omnimedia Inc (MSO.N) to have a material adverse impact on its results.

Macy's sued Penney and Martha Stewart Living after the two announced a partnership in December 2011, saying that the agreement breached its contract with Martha Stewart that included exclusive rights to Martha Stewart-branded cookware, bedding and bath products.

"While no assurance can be given as to the ultimate outcome of this matter, we currently believe that the final resolution of this action will not have a material adverse effect on our results of operations, financial position, liquidity or capital resources," Penney said in a regulatory filing on Friday.

Martha Stewart Living said in January it settled a lawsuit with Macy's over the home products deal with Penney.

Penney's shares closed at $8.49 on the New York Stock Exchange on Friday.

(Reporting by Maria Ajit Thomas in Bangalore; Editing by Maju Samuel)