J. C. Penney Company, Inc. reported that comparable Department Store sales increased 2.0% for the five weeks ended October 2, 2004. Catalog/Internet sales increased 3.3%, with Internet increasing nearly 30% for the period. The Company In addition, sales were impacted to some extent by record-high energy prices.
The Company expects flat to low-single digit increases for both comparable Department Store and Catalog/Internet sales for October. This outlook factors in recent softness in the consumer environment, particularly in the central part of the country.
Through the first nine weeks of the third quarter, earnings are tracking at the high end of the Company's previously announced earnings range, reflecting strong gross margin performance and an improved Catalog/Internet profit contribution.
As of October 6, 2004, the Company has repurchased 19.8 million shares of its common stock in open market transactions, or approximately 25 percent of its announced share repurchase program. In addition, the Company has retired approximately $1 billion of debt year to date and announced that it expects to call its $650 million of 5% Convertible Notes at the end of October.
Preliminary Sales Summary
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($ in millions)
Period ended % Increase
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Oct. 2, Sep. 27, All Stores Comparable
2004 2003 Stores
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5 Weeks
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Department stores $1,255 $1,229 2.1 2.0
Catalog/Internet 253 245 3.3
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Total $1,508 $1,474 2.3
9 Weeks
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Department stores $2,601 $2,523 3.1 3.0
Catalog/Internet 448 428 4.7
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Total $3,049 $2,951 3.3
35 Weeks
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Department stores $9,313 $8,731 6.7 6.8
Catalog/Internet 1,625 1,576 3.1
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Total $10,938 $10,307 6.1
