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JCPenney Reports June Sales Results
Company Raises Second Quarter Earnings Guidance

PLANO, Texas--(BUSINESS WIRE)--Jul. 9, 2009-- J. C. Penney Company, Inc. (NYSE:JCP) comparable store sales decreased 8.2 percent for the five weeks ended July 4, 2009, slightly better than the Company’s guidance for sales to decrease 9 to 12 percent and compared to a 2.4 percent decrease last year. Total sales in June decreased 6.7 percent.

From a merchandise perspective, men’s Father’s Day merchandise categories were among the best performers during the June period. The fine jewelry division was also a better performer than in previous months after a successful Diamond Showcase promotional event. The children’s division experienced the weakest sales results for the month reflecting lower levels of clearance sales. Geographically, the best performing area of the country was the southwest region, while the southeast region had the weakest results.

Preliminary June Sales Summary

($ in millions)

       
Total Company Sales % Increase/(Decrease)
for period ended Total Sales Comp Stores
Jul. 4, Jul. 5,    
2009 2008 2009 2008 2009 2008
 

5 Weeks

$ 1,495 $ 1,602 (6.7 ) (0.4 ) (8.2 ) (2.4 )
 

9 Weeks

$ 2,749 $ 2,946 (6.7 ) (1.3 ) (8.2 ) (3.3 )
 

22 Weeks

$ 6,633 $ 7,073 (6.2 ) (3.6 ) (7.8 ) (5.7 )
 

July Sales and Updated Second Quarter Sales and Earnings Outlook

Based primarily on better-than-expected performance during the May and June periods, management is raising its guidance for second quarter earnings. In addition, management is confirming second quarter comparable store sales expectations at the favorable end of its original guidance range. The following updated guidance takes into consideration operating performance during the first two months of the Company’s fiscal second quarter and the Company’s sales guidance for the month of July.

  • July sales: Comparable store sales are expected to decrease 13 to 16 percent. In last year’s July period, comparable store sales decreased 6.5 percent. Sales during the July period are expected to be negatively impacted by a later start to the Back-to-School selling period and the shift of several state tax-free shopping periods into this year’s fiscal August, as well as by lower levels of clearance inventory relative to last year.
  • Second quarter sales: Management now expects comparable store sales to decrease 9.5 to 10.5 percent compared to original guidance for a decrease of 9 to 12 percent.
  • Second quarter earnings: Management now expects to report a loss in the range of $0.08 to $0.12 per share, which includes the impact of our previously announced voluntary contribution of common stock to the Company’s qualified pension plan. This compares to previous guidance for a loss in the range of $0.15 to $0.25 per share provided prior to the pension contribution.

Sales Conference Call Recording (8:30 a.m. ET) -- (877) 793-7778

About JCPenney

JCPenney is one of America's leading retailers, operating 1,101 department stores throughout the United States and Puerto Rico, as well as one of the largest apparel and home furnishing sites on the Internet, jcp.com, and the nation's largest general merchandise catalog business. Through these integrated channels, JCPenney offers a wide array of national, private and exclusive brands which reflect the Company's commitment to providing customers with style and quality at a smart price. Traded as "JCP" on the New York Stock Exchange, the Company posted revenue of $18.5 billion in 2008 and is executing its strategic plan to be the growth leader in the retail industry. Key to this strategy is JCPenney's "Every Day Matters" brand positioning, intended to generate deeper, more emotionally driven relationships with customers by fully engaging the Company's approximately 150,000 Associates to offer encouragement, provide ideas and inspire customers every time they shop with JCPenney.

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, general economic conditions, including inflation, recession, unemployment levels, consumer spending patterns, credit availability and debt levels, changes in store traffic trends, the cost of goods, trade restrictions, changes in tariff, freight, paper and postal rates, changes in the cost of fuel and other energy and transportation costs, increases in wage and benefit costs, competition and retail industry consolidations, interest rate fluctuations, dollar and other currency valuations, risks associated with war, an act of terrorism or pandemic, and a systems failure and/or security breach that results in the theft, transfer or unauthorized disclosure of customer, employee or Company information. 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.

Source: J. C. Penney Company, Inc.

J. C. Penney Company, Inc.
Investor Relations
Phil Sanchez, 972-431-5575
psanc3@jcpenney.com
or
Kristin Hays, 972-431-1261
klhays@jcpenney.com
or
Media Relations
Darcie Brossart, 972-431-3400
jcpcorpcomm@jcpenney.com
or
Corporate Website
www.jcpenney.net

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