J. C. Penney Company comparable department store sales increased 4.8% for the five weeks ended July 3, 2004. Sales reflect a good customer response to planned Father's Day marketing events.
Catalog/Internet sales decreased 3.4 percent, with Internet increasing over 25 percent. Sales were soft primarily as a result of out-of-stocks in selected merchandise categories due to strong sales earlier in the season.
For July, the Company currently expects comparable department store sales to be up low single digits. Catalog/Internet sales are expected to be down mid-single digits, compared with a strong 10.6 percent gain last year.
Operating profit for the second quarter is tracking above previous guidance, reflecting strong department store sales and related gross margin, as well as an improved profit contribution from Catalog/Internet. As a result, the Company now expects second quarter earnings in the range of $0.09 to $0.13 per share, compared to a loss of $0.03 per share in last year's second quarter.
Preliminary Sales Summary
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($ in millions)
Period ended % Increase/(Decrease)
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July 3, June 28, Comparable
2004 2003 All Stores Stores
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5 Weeks
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Department stores $1,257 $1,200 4.8 4.8
Catalog/Internet 198 205 (3.4)
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Total $1,455 $1,405 3.6
9 Weeks
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Department stores $2,299 $2,156 6.6 6.7
Catalog/Internet 377 384 (1.8)
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Total $2,676 $2,540 5.4
22 Weeks
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Department stores $5,708 $5,280 8.1 8.4
Catalog/Internet 1,002 971 3.2
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Total $6,710 $6,251 7.3
