JCP's private brands attract new customers

16 Aug '11

4 min read

Outlook

The Company's 2011 third quarter guidance is as follows:

• Comparable store sales: expected to increase 2 to 3 percent.
• Total sales: expected to increase approximately 250 basis points less than comparable store sales due to the impact of the Company's exit of its catalog and related businesses.
• Gross margin rate: expected to be down slightly when compared to last year.
• SG&A expenses: expected to be flat to down slightly.
• Depreciation and amortization: approximately $135 million.
• Real Estate and Other:net $11 million of expense, including expenses related to restructuring and other cost saving initiatives.
• Interest expense: approximately $57 million.
• Income tax rate: approximately 38 percent.
• Average shares for EPS calculation: approximately 216 million common shares.
• Earnings per share: expected to be in the range of $0.15 to $0.20 per share, including restructuring charges of approximately $0.05 per share. This guidance does not include the impact of the Company's voluntary early retirement program that was communicated to associates this month. The Company anticipates it will disclose the number of associates who elect to participate in the program as well as the operational efficiencies resulting from the program as part of the Company's third quarter earnings release.

J. C. Penney Company Inc

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