J. C. Penney reported comparable department store sales
increased 4.3 % for the five weeks ended December 27, 2003. This represents the third consecutive year in which December sales have increased by more than four percent. Sales were particularly strong in the final days prior to, and immediately after Christmas. All merchandise divisions had positive comparable store sales.
Catalog/Internet sales increased 5.6 percent, above expectations.
Catalog was led by holiday gift merchandise and specialty books.
Internet sales continued to experience strong growth, increasing over
45 percent for the month and year to date.
Comparable drugstore sales decreased 2.5 percent, with pharmacy
sales increasing 1.5 percent and front-end sales decreasing 9.0
percent. Based on sales trends, the Company now expects Eckerd's
fourth quarter operating profits to decline by 50 to 60 percent.
The Company currently expects both comparable department store and
catalog/Internet sales for the January period to be up low single
digits, and comparable drugstore sales to be down low single digits.
These sales expectations exclude the effects of the 53rd week which
will be reported in this year's January period.
On a consolidated basis, the Company continues to be comfortable
with the previously communicated earnings per share guidance for the
fourth quarter and full year.
Preliminary Sales Summary
($ in millions)Period ended % Increase/(Decrease)
----------------- ----------------------------
Dec. 27, Dec. 28, Comparable
2003 2002 All Stores Stores
-------- -------- ----------------- ----------5 Weeks
-----------------------
Department stores $2,839 $2,773 2.4 4.3
Eckerd drugstores 1,527 1,528 (0.1) (2.5)
Catalog/Internet 375 355 5.6
-------- --------
Total Company $4,741 $4,656 1.89 Weeks
-----------------------
Department stores $4,221 $4,188 0.8 2.6
Eckerd drugstores 2,671 2,665 0.2 (2.5)
Catalog/Internet 671 620 8.2
-------- --------
Total Company $7,563 $7,473 1.248 Weeks
-----------------------
Department stores $14,131 $14,287 (1.1) 0.5
Eckerd drugstores 13,738 13,524 1.6 (1.2)
Catalog/Internet 2,485 2,460 1.0
-------- --------
Total Company $30,354 $30,271 0.3
