J. C. Penney Company, Inc. comparable store sales decreased 1.8% for the four weeks ended May 29, 2010, while total sales decreased 2.1%. May sales results were generally in line with the company’s expectations for the month, and management continues to expect second quarter comparable store sales to increase in the range of 2.5 to 3 percent. In last year’s May period, comparable store sales decreased 8.2%.



As noted previously, sales during the month reflected a negative impact from the shift of Memorial Day shopping into the June reporting period. For the May period, men’s, women’s accessories, and shoes and handbags were the top performing merchandise divisions. Geographically, the central and northeast regions had the best sales performance.


















































































































































































Preliminary May Sales Summary
($ in millions)
                     
Total Company Sales % Increase/(Decrease)
for period ended Total Sales Comp Stores
May 29, May 30,  
2010 2009 2010 2009 2010 2009
 

4 Weeks
$ 1,228 $ 1,254 (2.1 ) (6.7 ) (1.8 ) (8.2 )
 

17 Weeks
$ 5,157 $ 5,138 0.4 (6.1 ) 0.6 (7.7 )


Internet Sales Reporting

For the May reporting period, Internet sales through jcp.com increased 3.1%. Beginning in May, the company has revised the components of its Internet sales calculation. In order to better align with industry practices, Internet sales for the company now include all on-line sales generated by store associates at the point-of-sale terminal to accommodate customer orders. Previously, only a portion of such sales have been included as Internet sales. In addition, on-line orders originating from catalog books will no longer be included in Internet sales and will be recorded as catalog sales.

 

For the first quarter of 2010, Internet sales increased 3.3% under the new calculation compared to an increase of 0.9% as originally reported. For comparable store sales, the impact of the change by month and for the first quarter of 2010 is shown in the following table:













































Comparable Store Sales
Reflecting Change in Internet Sales Calculation
 
% Increase/(Decrease)
As Reported     New Basis
February 1.2 1.2
March 5.4 5.8
April (3.3) (3.1)
1st Quarter 1.3 1.6

For 2009, the change in methodology did not have a material impact on reported sales for Internet or comparable stores.