Sales decline 22.6% at JC Penney in Q2 FY'12

• Home office and store severance expense $56 million, or $0.16 per share;
• Store fixtures $42 million, or $0.12 per share;
• Software and systems $36 million, or $0.10 per share;
• Supply chain $10 million, or $0.03 per share;
• Management transition $10 million, or $0.03 per share;
• Other $5 million, or $0.01 per share.

The Company ended the second quarter with approximately $888 million in cash and cash equivalents on its balance sheet. Cash used in operations in the second quarter was $32 million, $545 million less than the first quarter of 2012.

2012 Outlook:

The Company no longer anticipates achieving the previously issued non-GAAP earnings guidance for fiscal 2012.  Management intends to continue to provide qualitative information on business trends and capital expenditures throughout the year.  Additionally, the Company expects to end the fiscal year with in excess of $1 billion of cash on the balance sheet after spending $800 million in capital expenditures to support the Company's transformation efforts and paying off $230 million of notes due in August 2012.

J. C. Penney Company Inc