JC Penney Company, Inc. (JCP) recently reported sales results for December. The company’s comparable store sales for December dipped 3.8% compared to an 8.1% decline in the same month last year, but remained well within the guidance range of a 3% to 6% decline predicted earlier. Year-to-date comps slid 6.5% compared to a fall of 8% posted in the same period last year. 

Although the rate of decline in comps decelerated in December, after declining 5.9% in November, the company warned about a steeper decline in January. JC Penney expects comps to dip in the range of 5% to 8% in January compared to a 16.4% decline in the same month last year. For the fourth-quarter 2009, management expects comps to fall by 5%, which remains within the original guidance range of 4% to 6%. 

By categories, women’s and men’s apparel, accessories and shoes registered an improvement in demand, as the company offered products at compelling prices. However, sales of home furnishings products remained sluggish at JC Penney’s stores. 

Internet sales through jcp.com remained robust in December with high-teen rise in orders during holiday shopping periods of Black Friday weekend and the week before Christmas. 

JC Penney’s total sales for December declined 2.4% to $2,889 million from $2,961 million reported in the same month last year. Year-to-date sales were down 5.1% to $16,616 million from $17,503 million reported in the same period last year. 

Based on JC Penney’s performance in the fourth quarter so far, management sees earnings in the range of 77 cents to 82 cents a share. Earlier the company had anticipated earnings between 70 cents and 85 cents. For fiscal year 2009, management expects earnings in the range of $1.00 to $1.05. 

The Zacks Consensus Estimate for the fourth quarter and fiscal year 2009 are 82 cents and $1.05 per share, respectively. 

JC Penney currently operates 1,109 department stores in the United States and Puerto Rico. The company also operates the largest apparel and home furnishing site, jcp.com, and the largest general merchandise catalog business. Shares of JC Penney fell 0.2% to $26.75 in after-market trading.
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