JC Penney Ekes Out 0.3 Comp Increase for December

JC Penney Company, Inc. said comparable store sales for the five-week period ended Dec. 31, 2011 , increased 0.3 percent.  This compares to a 3.7 percent increase in the same period last year. Total company sales in December decreased 2.3 percent.

For the month, children's apparel and women's accessories were the top performing merchandise divisions.  While overall sales and traffic were softer than anticipated, the company noted better trends in its stores during the week leading up to Christmas and increases in traffic and orders on jcp.com during the key holiday shopping periods of the week after Thanksgiving and the week before Christmas.

Fourth Quarter Outlook
Due to the softer sales performance during the first two months of the quarter, the company now anticipates that comparable store sales for the fourth quarter will be down slightly to last year.  Earnings before one-time items identified below, are now expected to be in the range of 65 cents to 70 cents per share on a non-GAAP basis, reflecting lower sales and higher markdown activity than anticipated throughout the quarter.  On a GAAP reporting basis, the company expects to report a fourth quarter loss in the range of (45 cents) to (30 cents) per share, after including the following one-time items:

restructuring and management transition charges that are now expected to be approximately 50 cents to 55 cents per share; and
the financial impact of actions taken to execute changes to the company's pricing and promotional strategies ahead of the spring 2012 season, that are expected to lower operating income and impact earnings per share by approximately 50 cents to 55 cents .