Sales fall at Macy's Inc., JCPenney

CINCINNATI and PLANO, Texas Macy's Inc. and JCPenney Co. today reported results for their respective five-week periods for the month of June. Macy's Inc. reported total sales of $2.32 billion for the five weeks ended July 7, a decrease of 1.9% compared to total sales of $2.37 billion in the same period last year. For the same period, JCPenney reported a total company sales decrease of 0.4% to $1.609 billion from $1.615 billion in 2006.

On a same-store basis, Macy's Inc. sales were down 2.7% in June. This compares with the company's guidance for same-store sales to be flat to down 2% in June. JCPenney's comparable-department store sales decreased 1.5%, in-line with guidance for a low-single digit decline. Last year, JCPenney's comparable-department store sales increased 4.3% in the June period. According to JCPenney, its best performing merchandise categories for the month were children's apparel, women's apparel and family footwear, while categories such as furniture and fine jewelry continued to be soft.

For the year to date, Macy's Inc. sales totaled $10.22 billion, down 1% from total sales of $10.32 billion in the first 22 weeks of 2006. On a same-store basis, Macy's Inc.'s year-to-date sales also were down 1%.

Macy's Inc. expects same-store sales in July to be flat to down 3%. Based on sales levels that are lower than originally expected, the company now expects second quarter earnings per diluted share, excluding merger integration costs, to be in the range of 20 cents to 30 cents, compared to previous guidance of 35 cents to 45 cents.

JCPenney expects comparable-department store sales to increase low-double digits to mid-teens. The company continues to expect second quarter earnings per share of 77 cents.