J. C. Penney Company, Inc. reported comparable department store sales increased 3.3% for the four weeks ending Jan. 29, 2005. Department store sales exceeded expectations and reflected good sell-through of seasonal and holiday clearance merchandise, as well as a positive early response to Spring apparel and seasonal products.
Catalog/Internet sales increased 12.6% for the comparable four week period, which was also above expectations. Internet sales for the comparable four week period increased nearly 45% for the month. For the full year, Internet sales increased 31% and totaled approximately $812 million.

While the company has not finalized earnings for the quarter, based on January’s sales performance, management now expects fourth quarter earnings to be in the range of $1.08 to $1.12 per share. Earnings will be released on Feb. 24, 2005. The company will provide earnings guidance for 2005 in conjunction with the fourth quarter earnings release.

For the month of February, the Company expects comparable Department Stores sales to be flat to up slightly and Catalog/Internet sales to increase low single digits. This compares to increases of 12.1% and 8.0%, respectively, in last year’s February period. 

                      Preliminary Sales Summary
                           ($ in millions)

                            Period ended               % Increase
                    ----------------------------- --------------------
                    Jan. 29, Jan. 31,     %       Excluding Comparable
                      2005     2004    (Dec.)/Inc   53rd    Stores (b)
                                                   Week(a)
                    ----------------------------- --------- ----------

4 vs 5 Weeks
-------------------
Department stores      $879     $997       (11.8)      4.0        3.3
Catalog/Internet        188      214       (12.1)     12.6
                    -------- --------
Total Company        $1,067   $1,211       (11.9)      5.4

13 vs 14 Weeks
-------------------
Department stores    $5,210   $5,213        (0.1)      2.9        3.1
Catalog/Internet        872      885        (1.5)      3.9
                    -------- --------
Total Company        $6,082   $6,098        (0.3)      3.1

52 vs 53 Weeks
-------------------
Department stores   $15,693  $15,087         4.0       5.1        5.1
Catalog/Internet      2,739    2,699         1.5       3.3
                    -------- --------
Total Company       $18,432  $17,786         3.6       4.8


(a) Last year's 53rd week accounted for sales (in millions) of $152
    and $46 for department stores and catalog/Internet respectively

(b) Comparable store sales are presented on a 4-week, 13-week and
    52-week basis.