J. C. Penney Company, Inc. total department store sales increased 2.3%, while comparable store sales increased 1.6% for the four weeks ended July 30, 2005. Comparable store sales were in line with previous guidance for a low-single digit increase, and followed a strong 8.1% increase in last year's July period. The best sales results for the period were in women's accessories, men's sportswear and juniors. From a geographical perspective, sales were strongest in the west and southeast regions of the country.

Direct (catalog/Internet) sales increased 4.0% versus guidance for a low- to mid-single digit increase, and compared to a 1.1% decline in the same period last year. Sales for jcpenney.com increased about 30% for the month, on top of a 33% increase last July.

August Sales Guidance

For the month of August, the company expects comparable department store sales to increase low-single digits compared to an increase of 4.1% in the same period last year. Direct (catalog/Internet) sales are expected to be flat versus a 6.0% increase last August, with continued strength coming from jcpenney.com. 

                      Preliminary Sales Summary
                           ($ in millions)

                               Period ended           % Increase
                          ---------------------- ---------------------
                           Jul. 30,    Jul. 31,             Comparable
                             2005       2004     All Stores   Stores
                          ----------- ---------- ---------- ----------

4 Weeks
-------
Department stores             $1,003       $980        2.3        1.6
Direct (catalog/Internet)        182        175        4.0
                          ----------- ----------
Total Company                 $1,185     $1,155        2.6

13 Weeks
--------
Department stores             $3,390     $3,226        5.1        4.2
Direct (catalog/Internet)        591        552        7.1
                          ----------- ----------
Total Company                 $3,981     $3,778        5.4

26 Weeks
--------
Department stores             $6,849     $6,573        4.2        3.5
Direct (catalog/Internet)      1,250      1,177        6.2
                          ----------- ----------
Total Company                 $8,099     $7,750        4.5

Capital Structure Repositioning Update

Through July 29, 2005, the company had repurchased approximately 20 million shares of common stock for about $1 billion in fiscal 2005, and has now completed about 72% of the aggregate $4.15 billion share repurchase program. Management continues to expect that it will complete the current authorization by the end of 2005.