J. C. Penney Company, Inc. reported that total department store sales increased 3.2% for the month of April. On a comparable store basis, sales increased 2.6%, in line with guidance for a low single digit increase, but slightly off a 3.5% increase posted in the same period last year. The southeast and western regions of the country continue to generate the strongest sales results, with the best divisional performance coming from children's, family shoes, and men's apparel.

Direct sales increased 1.5% during the period, compared to initial guidance for sales to be flat to up slightly. The sales improvement compared to an increase of 12.5% in the April period last year. Internet sales through jcp.com continue to represent the company's fastest growing sales channel, increasing 17 percent in April, on top of a 45% increase last year.

May Sales Guidance

For the month of May, management expects comparable department store sales to increase low single digits and Direct sales to be about flat. In last year's May period, comparable department store and Direct sales increased 2.9% and 7.8%, respectively.

Earnings Outlook

Based on operating performance trends, the company now expects first quarter earnings from continuing operations to be approximately 88 cents per share, including approximately 5 cents per share from real estate income and from lower than expected interest expense. This compares to initial guidance of 80 cents per share for this year's quarter and 62 cents per share last year. Adding this change into full year results, the company now expects full year earnings from continuing operations to be in the range of $4.22 to $4.32 per share. 

                   Preliminary April Sales Summary

                           ($ in millions)


                                                     % Increase

                                               -----------------------

                               Period ended    All Stores  Comp Stores

                            ------------------ ----------- -----------

                            Apr. 29,  Apr. 30,

                              2006      2005   2006  2005  2006  2005

                            --------- -------- ----- ----- ----- -----

4 Weeks

-------

Department stores             $1,168   $1,132   3.2   4.6   2.6   3.5

Direct                           201      198   1.5  12.5

                            --------- --------

Total Company                 $1,369   $1,330   2.9   5.6


13 Weeks

--------

Department stores             $3,535   $3,459   2.2   3.4   1.3   2.8

Direct                           685      659   3.9   5.4

                            --------- --------

Total Company                 $4,220   $4,118   2.5   3.7