Fourth Quarter Results:

Total sales for the fourth quarter, which included $163 million of sales in the 53rd week, decreased 28.4 percent to $3.884 billion.  Comparable store sales, which exclude the 53rd week, declined 31.7 percent.  Internet sales through jcp.com were $315 million in the fourth quarter, decreasing 34.4 percent from last year.

Gross margin was 23.8 percent of sales, compared to 30.2 percent in the same period last year.  Gross margin was impacted by lower than expected sales and a higher level of clearance merchandise sales related to inventory reductions in 2012.

The Company's SG&A expenses decreased $134 million compared to last year's fourth quarter.

The Company incurred a charge of $148 million, or $0.41 per share, in the fourth quarter related to lump-sum settlements from its primary pension plan, elected by participants who have separated from the Company.

Additionally during the quarter, the Company recognized charges totaling approximately $86 million, or $0.24 per share, related to the impairment and write-off of certain store and store-related assets.

For the fourth quarter, the Company incurred $29 million, or $0.08 per share, in restructuring and management transition charges.

These charges comprised the following:
- Store fixtures $18 million, or $0.05 per share;
- Management transition $5 million, or $0.01 per share;
- Home office and stores $4 million, or $0.01 per share;
- Other $2 million, or $0.01 per share.

Operating cash flow in the fourth quarter was $645 million compared to $953 million in last year's fourth quarter.  Investing cash flow was a use of $229 million compared to a use of $455 million in the same quarter last year.

Spring 2013 Shops Outlook:

During spring 2013, the Company anticipates opening close to 20 shops designated for home products in 505 stores with brand partners such as Michael Graves, Jonathan Adler and Sir Terence Conran, among others.  In addition to transforming the home area, the Company will open nearly 700 Joe FreshTM apparel shops on March 15, 2013 as it transforms nearly 11 million square feet of retail space in the spring.

JC Penny