JCPenney lowers 1Q outlook

PLANO, Texas JCPenney has revised its first quarter sales and earnings guidance. The company said it now expects a low-double digit comparable-store sales decline and high-single digit decline for the first quarter. Additionally, the company expects first quarter earnings to be approximately 50 cents per share.

The company's previous guidance was for both March and first quarter sales to decline low-single digits and first quarter earnings to be in the range of 75 cents to 80 cents per share.

"Consumer confidence is at a multi-year low," said Myron Ullman, III, chairman and ceo of JCPenney. "JCPenney counts half of American families as its customers, and they are feeling macro-economic pressures from many areas, including higher energy costs, deteriorating employment trends and significant issues in the housing and credit markets. The sharp decline in sales is reflective of these trends. While the economic stimulus package may provide some temporary benefit, we expect the continuation of a difficult environment over the course of 2008. As a result, our management team is focused on enhancing the customer experience and finding additional opportunities in both our merchandising and expense management to best position the company to benefit when a recovery takes hold."

JCPenney reported that comparable-store sales decreased 6.7% for the four weeks ended March 1, compared with guidance for a low-single digit decrease. In last year’s February period, comparable-store sales increased 1.5%. Total sales in February decreased 4.4%.