JCPenney sees 4Q earnings slide

PLANO, Texas JCPenney today reported operating income of $729 million and earnings from continuing operations of $1.93 per share for the fourth quarter of 2007. For the fourth quarter of 2006, the company reported operating income of $756 million and earnings from continuing operations of $2.00 per share. For the full year, operating income was $1,888 million, or 9.5% of sales, and earnings from continuing operations were $4.90 per share. Net income for this year's fourth quarter and full year, including the impact of discontinued operations, was $1.93 and $4.93 per share, respectively.

"I am proud of what our team accomplished in 2007," said Myron Ullman III, chairman and ceo of JCPenney. "Our ability to manage the business through difficult retail conditions is a tribute to our associates around the country and validates the long-range plan initiatives we have been implementing to become the retail industry leader in performance and execution."

The company reported that total sales for the fourth quarter decreased 4.1% to $6.4 billion from $6.7 billion last year, while comparable-store sales decreased 2.3%. According to JCPenney, the strongest merchandise results were in women's and children's apparel, and, geographically, the best performance was in the Northwest region of the country. The weakest performances were in fine jewelry and big-ticket home categories and in the Southeast region of the country.

For the first quarter of 2008, the company expects total sales to increase slightly. For the full year, the company expects sales to increase in the low-single digits. Comparable-store sales are expected to decrease in the low-single digits for both the first quarter and full year. The company anticipates that earnings per share will be in the range of 75 cents to 80 cents for the first quarter and $3.75 and $4.00 for the full year.