JCPenney outlook conservative

-- Home Textiles Today, 2/19/2010 9:20:00 AM

Plano, Texas – JCPenney today said it expects to generate earnings per share for the current fiscal year of about $1.55. That’s just off EPS of $2.57 two years ago but would represent a solid rebound from the $1.58 it posted in the recently concluded fiscal.

Gross margin rate is expected to be flat compared with 2009. The retailer forecast a comp increase in the low single digit, with a sales increase 30 to 50 basis points lower than the comp.

For the first quarter, JCPenney is looking for earnings per share from 16 cents to 20 cents as gross margin rate inclines slightly compared to last year’s 1Q. Comps are expected to be flat to slightly positive, with sales 30 basis points lower.