Internet Sales Grow 26 Percent; Third Quarter EPS Guidance Raised To $1.22 Per Share
PLANO, Texas--(BUSINESS WIRE)--Nov. 2, 2006--J. C. Penney Company,
Inc. (NYSE:JCP) comparable department store sales increased 8.1
percent for the four weeks ended Oct. 28, 2006, well ahead of initial
guidance for the month and compared with a 2.4 percent increase last
year. Total department store sales increased 11.0 percent for the four
weeks, including the positive impact from 28 new and relocated stores
opened in 2006 - 20 of which opened on Oct. 6. The October store
openings represent the first significant acceleration of the Company's
store growth program that will add more than 175 new stores over the
2006 to 2009 time frame.
Sales in the October period were led by strong consumer demand for
fall apparel and accessories, with the best overall merchandise
performance in men's, children's and women's apparel categories.
Geographically, all regions of the country generated consistent,
strong comparable store sales gains. Management is pleased with sales
results for its new product launches, including a.n.a, East 5th and
JCPenney's new, exclusive beauty offering, Sephora, which launched in
the first five stores on Oct. 6.
Internet sales through www.jcp.com continue to represent the
Company's fastest growing sales channel, increasing approximately 26
percent in October, on top of a 20 percent increase last year. Total
Direct sales increased 2.1 percent for the period, which was in line
with guidance, and compared with a 2.9 percent decrease last year. The
best performing categories in Direct were women's apparel and hard
home merchandise.
November Sales Outlook
Management's outlook is for both comparable department store and
Direct sales to increase low single digits for the four week November
period ending Nov. 25, 2006. In last year's November period,
comparable department store and Direct sales increased 3.6 percent and
2.5 percent, respectively.
Updated Third Quarter Earnings Guidance
While results for the third quarter have not been finalized, based
on sales and operating performance trends, management is raising
guidance for third quarter earnings from continuing operations to the
area of $1.22 per share, an increase of $0.11 per share from previous
guidance of $1.11 per share, compared with $0.94 per share in last
year's third quarter. Management will address fourth quarter and full
year earnings guidance in the Nov. 9 third quarter earnings release
and conference call.
Preliminary October Sales Summary
($ in millions)
% Increase /(Decrease)
-----------------------
Period ended All Stores Comp Stores
----------------- ----------- -----------
Oct. 28, Oct. 29,
2006 2005 2006 2005 2006 2005
-------- -------- ----- ----- ----- -----
4 Weeks
----------------------------
Department stores $1,298 $1,169 11.0 2.7 8.1 2.4
Direct 240 235 2.1 (2.9)
-------- --------
Total Company $1,538 $1,404 9.5 1.7
13 Weeks
----------------------------
Department stores $4,062 $3,796 7.0 3.0 5.2 2.5
Direct 719 683 5.3 (0.9)
-------- --------
Total Company $4,781 $4,479 6.7 2.4
39 Weeks
----------------------------
Department stores $11,228 $10,645 5.5 3.8 4.4 3.0
Direct 2,011 1,933 4.0 3.5
-------- --------
Total Company $13,239 $12,578 5.3 3.7
Sales Conference Call Recording (8:00 a.m. ET) - (402) 220-5662
Third Quarter Earnings Conference Call
Senior management will host a live conference call and real-time
webcast on Nov. 9, 2006, beginning at 9:30 a.m. ET to discuss second
quarter earnings. Access to the conference call is open to the press
and general public in a listen only mode. To access the conference
call, please dial 973-935-2035 and reference the JCPenney Quarterly
Earnings Conference Call. The telephone playback will be available for
two days beginning approximately two hours after the conclusion of the
call by dialing 973-341-3080, pin code 6939848. The live webcast may
be accessed via JCPenney's Investor Relations page at www.jcpenney.net
or on www.streetevents.com (for members) and www.fulldisclosure.com
(for media and individual investors). Replays of the webcast will be
available for up to 90 days after the event.
About JCPenney
J. C. Penney Corporation, Inc., the wholly owned operating
subsidiary of J. C. Penney Company, Inc., is one of America's largest
department store, catalog, and e-commerce retailers, employing
approximately 151,000 associates. As of Oct. 28, 2006, J. C. Penney
Corporation, Inc. operated 1,037 JCPenney department stores throughout
the United States and Puerto Rico. JCPenney is the nation's largest
catalog merchant of general merchandise, and jcp.com is one of the
largest apparel and home furnishings sites on the Internet. JCPenney
refers to the Internet/catalog business as Direct.
This release may contain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements, which reflect the Company's current views
of future events and financial performance, involve known and unknown
risks and uncertainties that may cause the Company's actual results to
be materially different from planned or expected results. Those risks
and uncertainties include, but are not limited to, competition,
consumer demand, seasonality, economic conditions, including the price
and availability of oil and natural gas, changes in interest rates,
changes in management, retail industry consolidations, government
activity, and acts of terrorism or war. Please refer to the Company's
most recent Form 10-K and subsequent filings for a further discussion
of risks and uncertainties. Investors should take such risks into
account when making investment decisions. We do not undertake to
update these forward-looking statements as of any future date. In
addition, non-GAAP terms referenced are defined and presented in the
Company's most recent annual report on Form 10-K.
CONTACT: J. C. Penney Company, Inc., Plano
Investor Relations:
Bob Johnson, 972-431-2217
rvjohnso@jcpenney.com
or
Ed Merritt, 972-431-8167
emerritt@jcpenney.com
or
Media Relations:
Darcie Brossart, 972-431-3400
dbrossar@jcpenney.com
or
Quinton Crenshaw, 972-431-3400
qcrensha@jcpenney.com
SOURCE: J. C. Penney Company, Inc.
