JCPenney January Sales down 1.2%; Raises Q4 EPS Guidance to $1.06 to $1.09

J. C. Penney Company, Inc. JCP reported today that its comparable store sales for the four-week period ended Jan. 29, 2011, decreased 1.2 percent. After strong sales during the first two months of the quarter, which resulted in quarterly sales coming in above the Company's expectations, January sales were impacted by lower levels of clearance inventory when compared to the same period last year, as well as by adverse weather conditions. Due to the better than expected overall sales performance during the quarter, coupled with gross margin performance that was in-line with expectations and rigorous expense management that resulted in expenses being well-leveraged against sales, the Company now expects fourth quarter earnings to be in the range of $1.06 to $1.09 per share, including the previously announced one-time restructuring charges of approximately $0.08 per share. Management had previously provided guidance for fourth quarter earnings to be in the range of $0.90 to $1.00 per share.