JC Penney Posts 3.6% Camp Sales Gain for November

J. C. Penney Company, Inc. comparable department store sales increased 3.6% for the four weeks ended Nov. 26, 2005. Comparable store sales were at the upper end of previous guidance for a low-single digit increase, and come on top of a 12.2% increase in last year's November period. Total department store sales increased 4.3% in for the month.

The best performing merchandise categories for the month were women's accessories, family shoes and home. Sales across all regions of the country were positive, with the best performance continuing to be in the southeast and west. Sales benefited from record after-Thanksgiving sales, with strong contributions across all merchandise categories and areas of the country.
Direct (catalog/Internet) sales increased 2.5 percent, which was above previous guidance for flat sales, and compares to a 4.1 percent decline in the November period last year. Sales for jcpenney.com increased approximately 23 percent in November and over 30 percent year-to-date.

For the month of December, the company expects both comparable department store and Direct (catalog/Internet) sales to increase low-single digits. Comparable department store sales decreased 1.3% and Direct sales increased 6.7% in last year's December period.

                      Preliminary Sales Summary
                           ($ in millions)

                                         % Increase / (Decrease)
                                    ----------------------------------
                    Period ended       All Stores       Comp Stores
                  ----------------- ----------------- ----------------
                  Nov. 26, Nov. 27, Nov. 26, Nov. 27, Nov.26, Nov. 27,
                    2005    2004(1)   2005     2004    2005    2004
                  -------- -------- -------- -------- ------- --------
4 Weeks
-------           
Department stores  $1,565   $1,500      4.3     12.2     3.6     12.2
Direct                291      284      2.5     (4.1)
                  -------- --------
Total Company      $1,856   $1,784      4.0      9.3

43 Weeks
--------
Department stores $12,210  $11,758      3.8      6.7     3.1      6.8
Direct              2,224    2,151      3.4      1.9
                  -------- --------
Total Company     $14,434  $13,909      3.8      5.9

(1) 2005 department store sales have reflected the accounting for a
sales returns reserve on a monthly basis. Beginning with the October
period, 2004 monthly sales are being shown on a comparable basis with
2005. 

Earnings Guidance

While November sales were at the upper end of previous guidance, it remains early in the holiday selling period and the majority of fourth quarter sales and operating profit are attributable to December sales performance. Consequently, management is maintaining previously announced fourth quarter earnings guidance of approximately $1.58 per share.