JCPenney, Kohl's and TJX results better than expected

PLANO, Tex., MENOMONEE FALLS, Wis. and FRAMINGHAM, Mass., JCPenney, Kohl’s and TJX reported July 2009 sales that managed to beat expectations.

JCPenney reported that comparable-store sales in July decreased 12.3%, slightly better than the company’s guidance for sales to decrease 13% to 16%. Total company sales in July decreased 10.6%. Sales during the month were impacted by a combination of a later start to the back-to-school selling period and the shift of several state tax-free shopping periods into this year’s fiscal August, as well as by lower levels of clearance inventory relative to last year. In last year’s July period, comparable-store sales decreased 6.5%.

Management’s guidance for the four-week period ending Aug. 29, is for a 6% to 9% decrease in comparable-store sales, compared to a 4.9% decrease in last year’s August period. August sales guidance takes into account the shift of several state tax-free shopping events from the July period into the August period, as well as the shift of Labor Day weekend shopping into the September reporting period.

Based on better than expected sales in July and continued improvement in gross margin and operating expenses, management now expects to report a second quarter loss of approximately 1 cent per share. This compares to the company’s most recent guidance for a loss in the range of 8 cents to 12 cents per share.

Kohl's reported that total sales for the four-week month ended Aug. 1 increased 5.2% from the four-week month ended Aug. 2, 2008. On a comparable-store basis, sales increased 0.4%.

Kevin Mansell, Kohl's president and CEO, commented, "We now expect earnings of 73 cents to 74 cents per diluted share for the second quarter of fiscal 2009, exceeding our previous guidance of 56 cents to 64 cents per diluted share."

TJX reported that sales for the four-week period ended Aug. 1, were $1.42 billion, up 5% over the $1.36 billion achieved during the four-week period ended Aug. 2, 2008. Consolidated comparable-store sales increased 4% compared to last year for the four-week period ended Aug. 1.

Carol Meyrowitz, president and CEO of TJX stated, “With consistently strong performance and above-plan sales and margins in every month of the quarter, we now expect earnings per share from continuing operations in the second quarter to be near the high end of our previously anticipated range of 56 cents to 59 cents, which would reflect an increase of 17% to 23% over strong prior-year results. Further, we are extremely well positioned as we enter the third quarter.”