J. C. Penney Company, Inc. comparable department store sales increased 3.5% for the four weeks ended May 28, 2005. Sales reflected a continuation of recent trends and an improvement over previous guidance. Inventory levels remain well balanced and on plan. Direct (catalog/Internet) sales increased 7.8%, in line with previous guidance. The Internet component of sales continued to achieve strong growth, increasing approximately 35% for the month. In last year's May period, comparable department store sales increased 9.1%, Direct (catalog/Internet) sales were flat, and Internet sales increased 35%.
For the month of June, the company expects comparable department store sales to be up low-single digits and Direct (catalog/Internet) sales to be up low- to mid-single digits. In last year's June period, comparable department store sales increased 4.8% and Direct (catalog/Internet) sales declined 3.4%.
Year-to-date, the company repurchased approximately 11 million shares of common stock for about $522 million. The company has completed approximately 66 percent of its share repurchase program and expects to repurchase the remaining $1.3 billion of common stock under the current authorization by the end of 2005. Additionally, the company has repurchased $209 million of debt in open market transactions year-to-date, and expects to complete the remaining $41 million of planned debt repurchases in the second quarter.
Preliminary Sales Summary
($ in millions)
Period ended % Increase
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May. 28, May 29, All Comparable
2005 2004 Stores Stores
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4 Weeks
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Department stores $1,097 $1,045 5.0 3.5
Direct (catalog/Internet) 193 179 7.8
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Total Company $1,290 $1,224 5.4
17 Weeks
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Department stores $4,630 $4,453 4.0 3.1
Direct (catalog/Internet) 852 804 6.0
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Total Company $5,482 $5,257 4.3
