J. C. Penney comparable Department Store sales
increased 2.1% for the four weeks ended Oct. 30, 2004, with positive contributions across all merchandise categories. Catalog/Internet sales increased 1.7%, with good performance from the Fall/Winter Big Book and Internet. Internet sales increased more than 20% for the period. Based on the positive sales momentum and improved gross margin trends, as well as Catalog/Internet's profit contribution, management has raised expectations for third quarter earnings from continuing operations to $0.47 to $0.49 per share.
The Company also reiterated that the sales pattern for each of the
months in the fourth quarter will be exaggerated by calendar shifts
resulting from last year's 53rd week. Thanksgiving week will be
reported in this year's November period whereas it was reported in
December last year. This will have a very positive effect on
Department Stores and a negative effect on Catalog/Internet. As a
result, the Company currently projects November sales for comparable
Department Stores to increase double digits and Catalog/Internet to
decline high-single digits. For the combined November/December
periods, the Company currently expects both Department Stores and
Catalog/Internet to be up low-single digits.
As of the end of the third quarter, the Company had repurchased
27.6 million shares of its common stock in open market transactions
for approximately $1 billion. This represents approximately 34 percent
of the total planned share repurchase program.
Preliminary Sales Summary
-------------------------
($ in millions)Period ended % Increase
----------------- ------------------
Oct 30, Oct 25, All Comparable
2004 2003 Stores Stores
-------- -------- ------- ----------4 Weeks
-------
Department stores $1,171 $1,143 2.4 2.1
Catalog/Internet 242 238 1.7
-------- --------
Total $1,413 $1,381 2.313 Weeks
--------
Department stores $3,772 $3,666 2.9 2.7
Catalog/Internet 690 666 3.6
-------- --------
Total $4,462 $4,332 3.039 Weeks
--------
Department stores $10,484 $9,874 6.2 6.2
Catalog/Internet 1,867 1,814 2.9
-------- --------
Total $12,351 $11,688 5.7
