J. C. Penney Company, Inc. department store sales increased 1.6% for the four weeks ended March 3, 2007. Comparable department store sales decreased 0.2%, compared with most recent guidance for sales to be down low-single digits. Comparable department store sales increased 2.3% last year.
As previously noted, individual monthly sales comparisons in 2007 will be impacted by calendar shifts resulting from last year's 53rd week. This year's February results, as an example, reflect fewer days prior to Valentine's Day, an important holiday for fine jewelry and intimate apparel. In addition, the Company focused on the successful transition of the selling floor to spring merchandise, with correspondingly lower clearance levels.
Sales strengthened at month end, with a good response to spring apparel and accessories, especially in warm weather markets. The best merchandise categories for the month were women's apparel, accessories and fine jewelry. Customer response to the mid-February launches of Ambrielle and the new Liz Claiborne merchandise lines have been very positive. Geographically, the southeast, southwest and northwest regions of the country generated the best results in the period.
Internet sales through www.jcp.com increased 23.3% for the four-week February period, on top of a 24.2% increase last year. Total Direct sales, which include Internet, catalog print media and outlet stores, decreased 2.4% for the four-week period. Initial guidance was for sales to be down slightly. Last year, total Direct sales increased 4.5%. Sales gains in women's, men's and children's apparel were more than offset by continued softness in home categories.
March Sales Guidance
Sales for the five-week March period are expected to rise sharply, benefiting from an earlier Easter and the shift in the retail calendar due to last year's 53rd week that results in Easter sales being reported in this year's March period. Based on this and the related shifts in marketing events, the Company expects March comparable department store sales to increase high-single digits, with total department store sales benefiting from the opening of seven new stores on March 4th. Total Direct sales are expected to increase low-single digits. In last year's March period, comparable department store sales declined 1.0%, Internet sales increased about 25% and total Direct sales increased 5.0%.
