J. C. Penney Company, Inc. said comparable store sales for the four-week period ended Aug. 1, 2009 decreased 12.3%, slightly better than the Company’s guidance for sales to decrease 13% to 16%.


Total company sales in July decreased 10.6%. Sales during the month were impacted by a combination of a later start to the Back-to-School selling period and the shift of several state tax-free shopping periods into this year’s fiscal August, as well as by lower levels of clearance inventory relative to last year. In last year’s July period, comparable store sales decreased 6.5%.

Women’s apparel and women’s accessories were the top performing merchandise divisions in July. Children’s apparel was the weakest performer and was impacted by lower levels of clearance merchandise when compared to the same period last year. The southwest region was the best performing region in July, while the southeast region had the softest sales performance during the month.


During the July period, the company launched “Schooled in Style: Smart Looks for Less,” an innovative, integrated marketing campaign for the 2009 Back-to-School Season. The campaign showcases recently launched brands RS By Sheckler, Rusty, and Third Rail a Zoo York Production and private brand Decree for young men, along with JCPenney’s other desired teen brands like Levi’s and Decree for juniors. The Company’s distinctive assortment of teen brands make it clear that even as JCPenney steps up its style, parents and teens can continue to depend on JCPenney for great quality and prices.





































































































































































Preliminary July Sales Summary

($ in millions)


 

 


 

 


 

 


 


 


 

 


 


 


 

 

Total Company Sales


 

% Increase/(Decrease)


 

 

for period ended


 

Total Sales


 

Comp Stores


 

 

Aug. 1,


 

Aug. 2,


 

 

 


 

 

 

 


 


 

 

2009


2008


2009


 

2008


 

2009


 

2008


 

 

 

 

 

 

 

 

 

 

 

 

 


4 Weeks


 

$


1,194


 

$


1,336


 

(10.6


)


 

(4.9


)


 

(12.3


)


 

(6.5


)


 

 

 

 

 

 

 

 

 

 

 

 

 


13 Weeks


 

$


3,943


 

$


4,282


 

(7.9


)


 

(2.5


)


 

(9.5


)


 

(4.3


)


 

 

 

 

 

 

 

 

 

 

 

 

 


26 Weeks


 

$


7,827


 

$


8,409


 

(6.9


)


 

(3.8


)


 

(8.5


)


 

(5.8


)











 

August Sales Outlook and Updated Second Quarter Earnings Guidance

 

Management’s guidance for the four-week period ending Aug. 29, 2009, is for a 6% to 9% decrease in comparable store sales, compared to a 4.9% decrease in last year’s August period. August sales guidance takes into account the shift of several state tax-free shopping events from the July period into the August period, as well as the shift of Labor Day weekend shopping into the September reporting period.

 

Based on better than expected sales in July and continued improvement in gross margin and operating expenses, management now expects to report a second quarter loss of approximately 1 penny per share. This compares to the Company’s most recent guidance for a loss in the range of 8 cents to 12 cents per share.