J. C. Penney Company, Inc. reported today that comparable department store sales increased 0.7 percent for the five weeks ended September 27, 2003. Sales of Back-to-School merchandise continued to perform well in September, while overall sales softened during the final week. The best performing merchandise categories were Home, Family Shoes, and Children's.
Catalog/Internet sales increased 12.9 percent. Improving sales trends in both print media and Internet reflect good customer response to merchandise assortments, presentation and pricing. Internet sales continue to experience strong growth, increasing over 60 percent for the month.
For October, the Company currently expects comparable department store sales to be essentially flat, compared with a very strong 13.7 percent gain last year. Catalog/Internet sales are expected to be up low single digits, and comparable Eckerd sales are expected to be down about one percent.
Operating profits are trending above last year's levels for department stores and catalog, while Eckerd's operating profits are trending below previous guidance. As a result, management continues to be comfortable with analysts' earnings estimates for the third quarter and full year.
Preliminary Sales Summary
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($ in millions)
Period ended % Increase/(Decrease)
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Sept. 27, Sept. 28, All Comparable
2003 2002 Stores Stores
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5 Weeks
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Department stores $1,232 $1,242 (0.8) 0.7
Eckerd drugstores 1,389 1,371 1.3 (1.1)
Catalog/Internet 245 217 12.9
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Total Company $2,866 $2,830 1.3
9 Weeks
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Department stores $2,530 $2,478 2.1 3.6
Eckerd drugstores 2,516 2,459 2.3 (0.7)
Catalog/Internet 427 403 6.0
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Total Company $5,473 $5,340 2.5
35 Weeks
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Department stores $8,763 $8,907 (1.6) (0.1)
Eckerd drugstores 9,941 9,756 1.9 (0.8)
Catalog/Internet 1,576 1,603 (1.7)
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Total Company $20,280 $20,266 0.1
