J. C. Penney Company, Inc. comparable department store sales increased 2.4% for the month of October. Comparable store sales were in-line with guidance of a low-single digit increase, and come on top of a 1.8% increase in last year's October period. Total department store sales increased 2.7% in October.

The best performing merchandise categories for the month were children's apparel, women's accessories and family shoes. From a geographical perspective, October sales continued to be strongest in the southeastern and western regions of the country, with sales trends improving in the central and northeastern regions toward the end of the month.

Direct (catalog/Internet) sales decreased 2.9 percent, which was below previous guidance for flat sales, and compares to a 1.7 percent increase in the October period last year. Sales for jcpenney.com increased over 20 percent in October and over 30 percent year-to-date, while print catalog sales, as expected, continued their lower trend.

For the month of November, the company expects comparable department store sales to increase low-single digits, following an increase of 12.2 percent in the same period last year. Direct (catalog/Internet) sales are expected to be about flat versus a decline of 4.1 percent last November. 

                      Preliminary Sales Summary
                           ($ in millions)

                                         % Increase / (Decrease)
                                    ----------------------------------
                    Period ended       All Stores       Comp Stores
                  ----------------- ----------------- ----------------
                 Oct. 29, Oct. 30, Oct. 29, Oct. 30, Oct. 29, Oct. 30,
                   2005    2004 (1)  2005     2004     2005    2004
                  -------- -------- -------- -------- ------- --------
4 Weeks
-----------------
Department stores  $1,170   $1,139      2.7      2.0     2.4      1.8
Direct                235      242     (2.9)     1.7
                  -------- --------
Total Company      $1,405   $1,381      1.7      2.0

13 Weeks
-----------------
Department stores  $3,797   $3,685      3.0      2.7     2.5      2.6
Direct                684      690     (0.9)     3.6
                  -------- --------
Total Company      $4,481   $4,375      2.4      2.9

39 Weeks
-----------------
Department stores $10,645  $10,258      3.8      5.9     3.0      6.0
Direct              1,933    1,867      3.5      2.9
                  -------- --------
Total Company     $12,578  $12,125      3.7      5.4

Management is raising earnings guidance for the third quarter to approximately $0.92 per share, which is an increase of $0.08 per share from previous guidance. This earnings guidance reflects improved operating performance and lower interest expense than anticipated in its most recent guidance, as well as income of approximately $0.03 per share related to a Visa Check/MasterMoney Antitrust Litigation settlement. The company continues to expect average diluted common shares of approximately 249 million shares for the quarter, consistent with previous guidance.