J.C. Penney raises 2Q outlook

-- Home Textiles Today, 7/9/2009 10:21:00 AM

Plano, Texas – With May and June turning in better than expected results, J.C. Penney today raised its guidance for second quarter earnings. The company now expects a loss of 8 cents to 12 cents per share versus a previous expectation of a loss in the range of 15 cents to 25 cents per share.

The company also confirmed second quarter comp sales at the favorable end of its original guidance. JCP expects a comp decline of 9.5% to 10.5%. Earlier, it forecast a decrease of 9% to 12%.

This month, JCP expects comps for fall 13% to 16%, citing a later start to back-to-school shopping this year as well as the shift of several state’s tax-free shopping periods into fiscal August. In addition, the company says it has lower levels of clearance inventory this year compared to last, which July comps fell 6.5%.