J. C. Penney Company, Inc. saw comparable sales at its department stores increase 1.4% in November on top of last year's 3.6% improvement. Total department store sales increased 3.3% for the month to $1.62 billion from $15.7 billion last year. The best sales performances for the month were in fine and fashion jewelry, children's and selected home categories. The company saw a positive early response to its “redbox gifts” program and products such as home entertainment, team sports and trim-a-tree. Geographically, the best performance continues to be in the west and southeast regions of the country.
Internet sales through www.jcp.com increased 17.5% in November, on top of a 23% increase last year. Including print and outlet stores, Direct sales decreased 0.3% for the period compared with initial guidance for a low-single digit increase and a 2.5% increase last year. The best performing categories in Direct were women's apparel, hard home and shoes.
December Sales and Fourth Quarter Earnings Outlook
For December, both comparable department store and Direct sales are expected to increase low single digits for the five week period ending Dec. 30, 2006. In last year's December period, comparable department store and Direct sales increased 2.2% and 4.3%, respectively. Management is reaffirming its previous earnings per share guidance for the fourth quarter.
Preliminary November Sales Summary
($ in millions)
% Increase /(Decrease)
-----------------------
Period ended All Stores Comp Stores
----------------- ----------- -----------
Nov. 25, Nov. 26,
2006 2005 2006 2005 2006 2005
-------- -------- ----- ----- ----- -----
4 Weeks
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Department stores $ 1,616 $ 1,565 3.3 4.3 1.4 3.6
Direct 290 291 (0.3) 2.5
-------- --------
Total Company $ 1,906 $ 1,856 2.7 4.0
43 Weeks
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Department stores $12,844 $12,210 5.2 3.8 4.0 3.1
Direct 2,301 2,224 3.5 3.4
-------- --------
Total Company $15,145 $14,434 4.9 3.8
