J.C. Penney (JCP) Reports July Same-Store Sales; Guides for Back-To-School Sales; Guides Higher for Q2 EPS

J.C. Penney Company, Inc. (NYSE: JCP) total department store sales increased 5.5% for the four weeks ended July 29, 2006. On a comparable store basis, sales increased 4.9%, on top of a 1.6% increase in last year's period.

Internet sales through jcp.com continue to represent the Company's fastest growing sales channel, increasing approximately 21% in July on top of a 30% increase last year.

While the Company is entering the Back-To-School selling season with positive momentum, it continues to take a cautious approach toward future guidance given macroeconomic conditions. Accordingly, for the four-week August period, management guidance is for both comparable department store and Direct sales to increase slightly. In last year's August period, comparable department store sales increased 2.8 percent and Direct sales were flat.

Based on sales and operating performance trends, management now expects second quarter earnings from continuing operations to be approximately $0.71 per share, an increase of $0.06 per share from previous guidance. Current consensus is $0.71.

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