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JCPenney Reports November Sales; Department Store and Catalog/Internet Sales Meet Expectations; Management Reaffirms Fourth Quarter Earnings GuidancePLANO, Texas --(Business Wire)-- Dec. 2, 2004 -- J. C. Penney Company, Inc. (NYSE:JCP) reported today that comparable department store sales increased 12.0 percent for the four weeks ended November 27, 2004. Sales were positive across all merchandise categories and all regions of the country. Results reflected record sales for the two days following Thanksgiving, driven by strong promotional programs. Catalog/Internet sales decreased 4.1 percent with the Internet component increasing over 20 percent. As previously noted, this year's November period includes Thanksgiving week whereas it was reported in last year's December period. This calendar shift benefited department stores and negatively impacted Catalog/Internet in November. The impact from this shift will reverse in the December period and therefore, November/December sales, which are expected to be up low-single digits for both comparable department stores and Catalog/Internet, should be viewed on a combined basis. The Company reiterated its previous sales expectations for the remaining months of the fourth quarter. Fourth quarter sales guidance is available on our investor relations website at http://www.jcpenney.net/company/finance/weekly.htm. The Company reaffirmed its previously announced fourth quarter earnings guidance of $0.95 to $1.05 per share, including the effects of approximately $0.08 per share related to one-time charges. However, fourth quarter earnings are highly dependent upon December results, which may be impacted by various factors including continued high energy costs. -0- *T Preliminary Sales Summary -------------------------------------------- ($ in millions) Period ended % Increase ---------------------- --------------------- Nov. 27, Nov. 22, Comparable 2004 2003 All Stores Stores ----------- ---------- ---------- ---------- 4 Weeks ------- Department stores $1,543 $1,377 12.1 12.0 Catalog/Internet 284 296 (4.1) ----------- ---------- Total $1,827 $1,673 9.2 43 Weeks -------- Department stores $12,027 $11,251 6.9 6.9 Catalog/Internet 2,151 2,110 1.9 ----------- ---------- Total $14,178 $13,361 6.1 *T Capital Structure Repositioning Update As of December 1, 2004, the Company had repurchased 32.7 million shares of its common stock in open market transactions for approximately $1.2 billion. This represents more than 40 percent of the total planned share repurchase program. Additionally, the Company has retired $1.7 billion or more than 70% of the planned debt restructure program, including a $650 million convertible bond which was converted into 22.8 million shares of JCPenney common stock on November 17, 2004. Sales Conference Call Recording (8:00 a.m. Eastern) 402-220-5662 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 150,000 associates. As of October 30, 2004, J. C. Penney Corporation, Inc. operated 1,020 JCPenney department stores throughout the United States and Puerto Rico, and 61 Renner department stores in Brazil. JCPenney Catalog, including e-commerce, is the nation's largest catalog merchant of general merchandise, and JCPenney.com is one of the largest apparel and home furnishings sites on the Internet. J. C. Penney Corporation, Inc. is a contributor to JCPenney Afterschool Fund, a charitable organization committed to providing children with high quality after school programs to help them reach their full potential. 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, and government activity. Investors should take such risks into account when making investment decisions. In addition, non-GAAP terms referenced, such as EBITDA and free cash flow, are defined and presented in the Company's 2003 Annual Report on Form 10-K. |
