JCPenney beats April comps guidance, raises 1Q earnings outlook

PLANO, Texas JCPenney reported that comparable-store sales decreased 6.6% for the four weeks ended May 2, better than the company’s guidance for sales to decrease 9% to 12% and compared to a 1.7% decrease last year. Total sales in April decreased 5%.

Sales during the month benefited from the shift of Easter into the April reporting period this year, partially offset by the loss of one selling day. The top performing merchandise divisions during the month were women’s and children’s apparel, reflecting a strong customer response to the company’s spring apparel offerings. Fine jewelry experienced the weakest sales during the month. Geographically, the best performing region of the country was the Southwest, while the Central region experienced the weakest results.

Management’s guidance for the four-week period ending May 30, is for a 9% to 12% decrease in comparable-store sales, compared to a 4.4% decrease in last year’s May period.

Based on better-than-expected sales results in the April period, operational efficiencies achieved through process improvements and a consistent focus on expense control, management expects earnings for the first quarter to be in a range of 9 cents to 11 cents per share.