J.C. Penney reported comparable store sales decreased 6.5% for July, compared with the company’s guidance for sales to decrease mid-single digits. In last year’s July period, comparable store sales increased 12%, largely driven by a calendar shift that moved sales for an important Back-To-School selling week from August into the July reporting period. Total company sales in the 2008 July period decreased 4.9%.


 


Women’s apparel, family shoes and children’s were the top performing merchandise divisions in July, while fine jewelry and home experienced the weakest sales during the month. The northeast and central regions were the best performing regions, with the southeast and southwest continuing to experience softer sales during the month. The company continues to focus on effectively managing its inventory position, and, as previously forecasted, ended the July period with comparable store inventories below 2007 levels.


 


Total sales for July were down 4.9% to $1.34 billion from $1.4 billion.


 


In the 26-week, year-to-date period, revenues fell 5.8% to $8.4 billion with same-store sales down 5.8%.