JCPenney sees strong sales in Northwest & Central regions
13 Apr '07
2 min read
J. C. Penney Company Inc total department store sales increased 13.3 percent for the five weeks ended April 7, 2007, and include results from seven new stores the Company opened the first week of March.
Comparable department store sales increased 10.6 percent, compared to initial guidance for a high-single digit increase and a 1.0 percent decrease last year. Results for the month were driven by strength in apparel categories, which benefited from an earlier Easter, while home continued to experience some weakness.
Geographically, sales increased across all regions of the country, with the strongest sales coming from the northwest and central regions.
Internet sales through increased 15.5 percent for the five-week March period, on top of an increase of about 25 percent last year. Total Direct sales, which include Internet, catalog print media and outlet stores decreased 1.1 percent, compared to initial guidance for Direct sales to be up low-single digits and a 5.0 percent increase last year.
Sales in Direct continue to be impacted by softness in home categories, which represent a large portion of the Direct channel's volume.
First Quarter Earnings and April Sales : During the Company's upcoming Analyst Meeting, management will address first quarter earnings expectations, reflecting trends in both the department store and Direct shopping channels.
Sales guidance for this year's April period reflects the impact from Easter shifting into the March period and an earlier Mother's Day on the fiscal calendar due to last year's 53rd week.
Accordingly, the Company is guiding to flat sales for both comparable department stores and Direct for the four-week April period ending May 5, 2007. Last year, April comparable department store sales increased 2.6 percent and total Direct sales increased 1.5 percent.
marketing@alchempro.com
