JCPenney beats 4Q earnings guidance, expects 1Q loss

PLANO, Texas JCPenney reported 2008 fourth quarter operating income of $389 million and earnings from continuing operations of 94 cents per share, compared to recent guidance for earnings to be in a range of 90 cents to 93 cents per share. For the full year, operating income was $1.13 billion, or 6.1%of sales, and earnings from continuing operations were $2.54 per share.

 Total sales in the fourth quarter decreased 9.8% compared to last year, while comparable-store sales decreased 10.8%. The strongest merchandise results were in women’s apparel and family shoes and, geographically, the best performance was in the Southwest region of the country. The weakest results were in fine jewelry and in the Southeast region.

For the first quarter of 2009, JCPenney expects total sales to decrease 10% to 13% and a loss in the range of 20 cents to 30 cents per share.