J. C. Penney Company, Inc. reported department store sales increased 0.3% for the four weeks ended June 2. Comparable department store sales decreased 2%, compared to initial guidance for sales to be flat, and an 11.1% increase last year.
The best performing merchandise categories for the May period were in apparel, where women's, children's and men's all experienced solid gains, while sales were softest in fine jewelry, women's accessories and home categories. Geographically, the best performing area of the country was in the northeast region.
Internet sales through www.jcp.com increased approximately 15 percent for the month, on top of a 27% increase last year. Total Direct sales decreased 5.1%, in-line with initial guidance for sales to decline mid-single digits, and a 1.6% increase last year. Sales in Direct continue to be impacted by softness in higher ticket home categories and the Spring/Summer Big Book.
Looking ahead, management reiterated that calendar shifts due to last year's 53rd week will have a significant impact on reported monthly sales in the current year. For the second quarter, management continues to expect comparable department store sales to increase low- to mid-single digits and Direct sales to decline low- to mid-single digits. This guidance takes into consideration the fiscal calendar shift, as well as recent sales trends.
Looking at sales on a monthly basis for the balance of the quarter, guidance for June is for comparable department store sales to be down low-single digits and for Direct sales to decline about 10%. The decline in Direct sales is due in part to the plan
