JCPenney 1Q earnings up, sales down

PLANO, Texas JCPenney reported earnings per share from continuing operations of 54 cents for the first quarter ended May 3, compared to $1.04 in last year’s first quarter. Net income for the quarter decreased 49.6% to $120 million.

During the first quarter, total sales decreased 5.1%. Comparable-store sales decreased 7.4% and were at the favorable end of the company’s revised guidance for a high-single digit decrease.

“Our financial performance in the first quarter was clearly impacted by the weakened consumer environment,” said Myron Ullman III, chairman and ceoof JCPenney. “We are fortunate in this economic climate to have strong financial flexibility, which enables us to continue to deliver a highly compelling shopping experience. Looking ahead, we will continue to take the necessary actions to align our business plans with the expectation that conditions will remain difficult for the remainder of 2008. Accordingly, inventory will be managed through appropriate pricing actions on existing merchandise and by reducing our future merchandise commitments to better balance our inventory position with expected sales levels.”

For the second quarter, the company expects total sales to decrease in the low-single digits, comparable-store sales to decrease in the mid-single digits and earnings per share of approximately 38 cents.