Exhibit 99.1
J. C. PENNEY COMPANY, INC.
and subsidiaries
SUMMARY OF OPERATING RESULTS
--------------------------------------------
(Amounts in millions except per share data)
<table>
<c> <c> <c> <c>
13 weeks ended
------------------- ------
April April
26, 27, Inc.
2003 2002 (Dec.)
----------- ------- ------
Comparable store sales (decrease)/increase
Department stores -4.9% 7.9%
Eckerd drugstores -1.1% 7.6%
Total retail sales
Department stores and catalog $3,723 $4,006 -7.1%
Eckerd drugstores 3,770 3,722 1.3%
----------- -------
Total 7,493 7,728 -3.0%
Margins and expenses
- --------------------------------------------
Gross margin - LIFO
Department stores and catalog 1,460 1,514 -3.6%
Eckerd drugstores 866 839 3.2%
----------- -------
Total 2,326 2,353 -1.1%
Selling, general and
administrative (SG&A) expenses
Department stores and catalog (1,377) (1,357) 1.5%
Eckerd drugstores (748) (739) 1.2%
----------- -------
Total (2,125) (2,096) 1.4%
Segment operating profit - LIFO
Department stores and catalog 83 157 -47.1%
Eckerd drugstores 118 100 18.0%
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Total 201 257 -21.8%
Other unallocated 7 (10) N/A
Net interest expense (104) (102) 2.0%
Acquisition amortization (10) (10) 0.0%
----------- -------
Income before income taxes 94 135 -30.4%
Income taxes (33) (49) -32.7%
----------- -------
Net income $61 $86 -29.1%
=========== =======
Earnings per share - diluted $0.20 $0.29 -31.0%
</table>
<page>
J. C. PENNEY COMPANY, INC.
and subsidiaries
SUMMARY OF OPERATING RESULTS
--------------------------------------------
(Amounts in millions except per share data)
<table>
<c> <c> <c>
13 weeks ended
-----------------
April April
26, 27,
2003 2002
------- -------
SEGMENT FINANCIAL DATA:
- ---------------------------------------
Department stores and catalog
Ratios as a % of sales:
FIFO/LIFO gross margin 39.2% 37.8%
SG&A expenses 37.0% 33.9%
Segment operating profit 2.2% 3.9%
Depreciation and amortization $89 (1) $92
Eckerd drugstores
Ratios as a % of sales:
FIFO gross margin 23.1% 23.0%
LIFO gross margin 22.9% 22.5%
SG&A expenses 19.8% 19.8%
Segment operating profit 3.1% 2.7%
LIFO charge $7 $15
Depreciation and amortization 69 61
SUPPLEMENTAL DATA:
- -------------------------------------
Average shares used for diluted EPS 272.7 291.7
Effective income tax rate 35.4% 36.5%
FIFO inventory:
Department stores and catalog $3,189 $2,983
Eckerd drugstores 2,307 2,312
Long-term debt, including current
maturities (2) 5,826 5,395
</table>
(1) Excludes $12 million of accelerated depreciation for catalog
facilities which is included in Other Unallocated.
(2) Excludes present value of operating leases and Eckerd's securitized
receivables