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J.C. Penney June same-store sales fall 2.4 percent

Department-store operator J.C. Penney Co. said Thursday its same-store sales fell 2.4 percent in June, a bigger drop than analysts predicted.

Analysts surveyed by Thomson Financial expected same-store sales to fall 1.1 percent. The retailer had predicted a decline in the mid-single digit range.

Same-store sales, or sales at stores open at least a year, is a key measure of retailer performance because it measures growth at existing stores rather than from newly opened ones.

Total sales during the five weeks ended July 5 fell less than 1 percent to $1.6 billion.

The women's division was the strongest category during the month, while jewelry and home sectors were weak.

Northeast and central region stores were strongest performers.

Quarter to date, same-store sales fell 3.3 percent while total sales fell 1 percent to $2.95 billion. Year to date, same-store sales fell 5.7 percent and total sales fell nearly 4 percent to $7.07 billion.

The company expects a mid-single digit decline in same-store sales during the July period ending Aug. 2.

In a recorded sales call, the company said while it may have received "modest benefit" from tax-rebate checks, it expects any benefit will be short lived.

Shares of J.C. Penney lost 87 cents, or 2.5 percent, to $34.65 in premarket trading.

Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


 
 

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