JCPenney beats 4Q earnings guidance

PLANO, Texas JCPenney reported that earnings per share from continuing operations for the fourth quarter ended Jan. 30 were 84 cents compared with the most recent guidance for earnings per share to be in the range of 77 cents to 82 cents. For the full year, earnings from continuing operations were $1.07 per share.

“JCPenney far exceeded its expectations and objectives for the year. By stepping up the style of the merchandise we offer customers and enhancing service in our stores, we were able to drive cash generation and profitability, in spite of the difficult economic climate,” said Myron Ullman, III, chairman and chief executive officer.

“With this strong foundation in place, our focus for fiscal 2010 is driving top-line growth. We intend to deliver positive comparable-store sales and market share growth as we leverage our position as a destination for affordable style and create a sense of discovery and excitement for our customers.”

Total sales in the fourth quarter decreased 3.6% compared with last year, while comparable store sales decreased 4.5%. The strongest merchandise results were in women’s apparel and shoes, and geographically, the best performance was in the central region of the country. The weakest results were in the home division and the Northwest region, the company reported.

For full year 2009, total sales decreased 5% compared with last year, while comparable-store sales decreased 6.3%.

For the 2010 first quarter, JCPenney said it expects comparable-store sales to be flat to slightly positive and earnings per share to be in a range of 16 cents to 20 cents.

For the full year, comparable-store sales are expected to increase in the  low single-digits and earnings per share are expected to be approximately $1.55 per share.