J.C. Penney February Comps Slide 6.7%

J. C. Penney Company, Inc. recorded a 6.7% decline in comparable store sales for the four weeks ended March 1, 2008, compared with guidance for a low-single digit decrease. In last year’s February period, comparable store sales increased 1.5%. Total sales in February decreased 4.4% to $1.26 billion.
 
For the month, women’s and children’s apparel and family footwear were the best performing merchandise divisions. American Living™, JCPenney’s updated classic traditional lifestyle brand, which was launched in approximately 600 stores, jcp.com and catalogs on Feb. 24th, has enjoyed a good initial customer response and Sephora Inside JCPenney, now in 64 stores, continues to generate very strong results. Geographically, the best performance was in the northwest region of the country. Home categories and the southeast region continue to experience the softest results.

March Sales Outlook

Management’s guidance for the five-week period ending April 5, 2008, is for a low-single digit decrease in comparable store sales. This is compared to an 11.0% increase in last year’s period. Total sales for the March period are expected to be about flat, and will benefit from the opening of 10 new and relocated stores at the beginning of the March period.