JCPenney Provides Supplemental Operating Information - Data Facilitates Analysis of Historical Results -

Apr 26, 2001, 01:00 ET from J. C. Penney Company, Inc.

    PLANO, Texas, April 26 /PRNewswire/ -- J. C. Penney Company, Inc.
 (NYSE:   JCP) today issued supplemental unaudited information to provide
 historical data on a quarterly basis, reflecting certain reclassifications
 consistent with information provided on an annual basis as presented in the
 Company's Annual Report and Form 10-K for the year ended January 27, 2001.
 This information, which presents operating results from continuing operations,
 facilitates analysis of the Company's operating results and segment operating
 data.  The attached schedules exclude the results of J. C. Penney Direct
 Marketing Services, Inc. (DMS).  As previously announced, DMS is being sold
 and consequently, its results are being reported as a discontinued operation.
 In addition, these schedules reflect the reclassification of shipping and
 handling fees and expenses as well as rent and occupancy expenses, neither of
 which had an impact on reported earnings or earnings per share.  These
 reclassifications are described in more detail in the Company's Annual Report.
     The attached supplemental unaudited information provides results of
 operations and segment operating data on a continuing basis (i.e., before the
 effects of previously reported restructuring charges and other non-comparable
 items).  Restructuring charges and other non-comparable items are shown
 separately for each period affected.
     J. C. Penney Company, Inc. is one of America's largest department store,
 drugstore, catalog and e-commerce retailers, employing approximately
 270,000 associates.  The Company operates approximately 1,100 JCPenney
 department stores in all 50 states, Puerto Rico, and Mexico.  In addition, the
 Company operates approximately 50 Renner department stores in Brazil.  Eckerd
 operates approximately 2,650 drugstores throughout the Southeast, Sunbelt, and
 Northeast regions of the U.S.  JCPenney Catalog, including e-commerce, is the
 nation's largest catalog merchant of general merchandise.  J. C. Penney
 Company, Inc. is the sponsor of JCPenney Afterschool, a partnership committed
 to providing kids with high-quality afterschool programs to help them reach
 their full potential.
     This release may contain forward-looking statements within the meaning of
 the Private Securities Litigation Reform Act of 1995.  Such forward-looking
 statements, which reflect the Company's current views of future events and
 financial performance, involve known and unknown risks and uncertainties that
 may cause the Company's actual results to be materially different from planned
 or expected results.  Those risks and uncertainties include but are not
 limited to, competition, consumer demand, seasonality, economic conditions,
 and government activity.  Investors should take such risks into account when
 making investment decisions.
 
                         Supplemental Data (unaudited)
 
      JCPenney Company, Inc.
      Results of Continuing Operations and Segment Operating Data
      Fiscal 1996 to 2000
      ($ in millions, except per share data)
 
                                                 2000
                           1st Qtr   2nd Qtr    3rd Qtr    4th Qtr     Year
 
     Retail sales
       Department stores   $3,199     $3,177     $3,415     $4,794    $14,585
       Catalog                997        896        987      1,293      4,173
       Eckerd drugstores    3,332      3,134      3,136      3,486     13,088
       Total retail sales   7,528      7,207      7,538      9,573     31,846
 
     Margins and expenses
      before the effects
      of non-comparable items
     Gross margin - LIFO
       Department stores
        and catalog         1,539      1,389      1,493      1,635      6,056
       Eckerd drugstores      751        711        676        817      2,955
       Total gross margin   2,290      2,100      2,169      2,452      9,011
 
     SG&A expenses
       Department stores
        and catalog        (1,372)    (1,315)    (1,412)    (1,611)    (5,710)
       Eckerd drugstores     (703)      (709)      (739)      (764)    (2,915)
       Total SG&A
        expenses           (2,075)    (2,024)    (2,151)    (2,375)    (8,625)
 
     Segment operating
      profit/(loss) - LIFO
      before the effects
      of non-comparable items
       Department stores
        and catalog           167         74         81         24        346
       Eckerd drugstores       48          2        (63)        53         40
       Total segment operating
        profit/(loss) before
        the effects of non-
        comparable items      215         76         18         77        386
 
     Corporate and other
      unallocated               7        ---         11         10         28
     Net interest expense
      and credit
      operations             (113)      (102)      (110)      (102)      (427)
     Acquisition
      amortization            (36)       (22)       (18)       (46)      (122)
     Income/(loss) from
      continuing operations
      before the effects of
      non-comparable items     73        (48)       (99)       (61)      (135)
     Other non-comparable items
       Gross margin
         Department stores
          and catalog         ---        ---        ---        (92)       (92)
         Eckerd drugstores    (66)         5        ---        (43)      (104)
       SG&A expenses
         Eckerd drugstores    (12)       ---        ---        ---        (12)
       Centralized
        merchandising process
        costs (ACT)           (14)       (11)       (15)       (15)       (55)
     Restructuring charges   (232)        25          3       (284)      (488)
      Total non-comparable
      items                  (324)        19        (12)      (434)      (751)
     (Loss)/income from
      continuing
      operations before
      income taxes           (251)       (29)      (111)      (495)      (886)
     Income taxes             (95)       (10)       (41)      (172)      (318)
     (Loss)/ income from
      continuing
      operations            $(156)      $(19)      $(70)     $(323)     $(568)
 
 
                         Supplemental Data (unaudited)
 
      JCPenney Company, Inc.
      Results of Continuing Operations and Segment Operating Data
      Fiscal 1996 to 2000
      ($ in millions, except per share data)
 
                                                 2000
                           1st Qtr   2nd Qtr    3rd Qtr    4th Qtr     Year
 
     Earnings/(loss) per
      share from continuing
      operations before the
      effects of non-comparable
      items
       Basic                $0.13     $(0.15)    $(0.24)    $(0.18)    $(0.44)
       Diluted              $0.13     $(0.15)    $(0.24)    $(0.18)    $(0.44)
 
     (Loss)/earnings per
      share from continuing
      operations
       Basic               $(0.63)    $(0.10)    $(0.30)    $(1.26)    $(2.29)
       Diluted             $(0.63)    $(0.10)    $(0.30)    $(1.26)    $(2.29)
 
     Shares
       Basic                261.2      261.6      262.0      262.4      261.8
       Full dilution        275.7      275.8      275.8      277.1      276.2
 
     Ratios are before the
      effects of non-
      comparable items
 
     Department Stores and Catalog
     Department Stores sales
      inc/(decr)             -3.0%      -2.2%      -4.5%      -2.2%      -2.9%
     Comp store sales
      inc/(decr)              3.1%      -1.5%      -3.7%      -2.0%      -2.4%
     Catalog sales
      inc/(decr)              0.2%       1.8%      -6.1%      -5.2%      -2.7%
 
     Ratios as a % of sales
       FIFO gross margin     36.7%      34.1%      33.9%      27.1%      32.4%
       LIFO charge/(credit)   ---        ---        ---         14         14
       LIFO gross margin     36.7%      34.1%      33.9%      26.9%      32.3%
       SG&A expenses         32.7%      32.3%      32.1%      26.5%      30.5%
       Segment operating
        profit                4.0%       1.8%       1.8%       0.4%       1.8%
 
     Eckerd drugstores
     Total Drugstores sales
      inc/(decr)              9.4%       5.3%       4.2%       2.7%       5.3%
     Comp store sales
      inc/(decr)              6.9%       9.7%       9.1%       8.1%       8.5%
 
     Ratios as a % of sales
       FIFO gross margin     22.9%      23.1%      22.0%      23.9%      23.0%
       LIFO charge             12         13         13         17         55
       LIFO gross margin     22.5%      22.7%      21.6%     23.4%       22.6%
       SG&A expenses         21.1%      22.6%      23.6%     21.9%       22.3%
       Segment operating
        profit                1.4%       0.1%      -2.0%      1.5%        0.3%
 
     Effective Tax Rate from
      continuing
      operations before      39.7%      35.4%      42.4%     36.1%       38.5%
      the effects of non-
      comparable items
 
 
                         Supplemental Data (unaudited)
 
      JCPenney Company, Inc.
      Results of Continuing Operations and Segment Operating Data
      Fiscal 1996 to 2000
      ($ in millions, except per share data)
 
 
                                                 1999
                           1st Qtr   2nd Qtr    3rd Qtr    4th Qtr     Year
     Retail sales
       Department stores   $3,297     $3,248     $3,577     $4,904    $15,026
       Catalog                995        880      1,051      1,364      4,290
       Eckerd drugstores    3,047      2,976      3,011      3,393     12,427
       Total retail sales   7,339      7,104      7,639      9,661     31,743
 
     Margins and expenses
      before the effects
      of non-comparable items
     Gross margin - LIFO
       Department stores and
        catalog             1,545      1,446      1,710      1,864      6,565
       Eckerd drugstores      757        732        706        792      2,987
       Total gross margin   2,302      2,178      2,416      2,656      9,552
 
     SG&A expenses
       Department stores
        and catalog        (1,400)    (1,328)    (1,484)    (1,663)    (5,875)
       Eckerd drugstores     (628)      (656)      (683)      (718)    (2,685)
       Total SG&A
        expenses           (2,028)    (1,984)    (2,167)    (2,381)    (8,560)
 
     Segment operating
      profit/(loss) - LIFO
      before the effects of
      non-comparable items
       Department stores
        and catalog           145        118        226        201        690
       Eckerd drugstores      129         76         23         74        302
       Total segment operating
        profit/(loss) before
        the effects of non-
        comparable items      274        194        249        275        992
 
     Corporate and other
      unallocated               6          9         (2)       ---         13
     Net interest expense
      and credit operations   (33)       (61)       (82)      (118)      (294)
     Acquisition
      amortization            (36)       (24)       (17)       (48)      (125)
     Income/(loss) from
      continuing operations
      before the effects of
      non-comparable items    211        118        148        109        586
     Other non-comparable items
       Gross margin
         Department stores
          and catalog         ---        ---        ---        (20)       (20)
         Eckerd drugstores    ---        (74)       ---        ---        (74)
       SG&A expenses
         Eckerd drugstores    ---        (45)       ---        ---        (45)
       Centralized
        merchandising process
        costs (ACT)           ---        ---        ---        ---        ---
     Restructuring charges    ---        ---        ---       (169)      (169)
      Total non-comparable
      items                   ---       (119)       ---       (189)      (308)
     (Loss)/income from
      continuing operations
      before income taxes     211         (1)       148        (80)       278
     Income taxes              80        ---         51        (27)       104
     (Loss)/ income from
      continuing operations  $131        $(1)       $97       $(53)      $174
 
                         Supplemental Data (unaudited)
 
      JCPenney Company, Inc.
      Results of Continuing Operations and Segment Operating Data
      Fiscal 1996 to 2000
      ($ in millions, except per share data)
 
                                                 1999
                           1st Qtr   2nd Qtr    3rd Qtr    4th Qtr     Year
 
     Earnings/(loss) per
      share from continuing
      operations before the
      effects of non-comparable
      items
       Basic                $0.48      $0.24      $0.34      $0.30      $1.36
       Diluted              $0.48      $0.24      $0.34      $0.30      $1.36
 
     (Loss)/earnings per share
      from continuing operations
       Basic                $0.48     $(0.04)     $0.34     $(0.24)     $0.54
       Diluted              $0.48     $(0.04)     $0.34     $(0.24)     $0.54
 
     Shares
       Basic                256.2      260.3      260.5      260.7      259.4
       Full dilution        272.3      276.1      276.2      276.0      275.1
 
     Ratios are before the
      effects of non-comparable
      items
 
     Department Stores and Catalog
     Department Stores sales
      inc/(decr)             -1.4%      0.5%       -2.6%      -1.5%      -1.3%
     Comp store sales
      inc/(decr)             -0.5%      1.0%       -3.0%      -1.4%      -1.1%
     Catalog sales
      inc/(decr)              9.0%      2.0%        0.4%      -1.7%       1.9%
 
     Ratios as a % of sales
       FIFO gross margin     36.0%     35.0%       36.9%      29.6%      33.9%
       LIFO charge/(credit)   ---        ---        ---         (9)        (9)
       LIFO gross margin     36.0%      35.0%      37.0%      29.7%      34.0%
       SG&A expenses         32.6%      32.1%      32.1%      26.5%      30.4%
       Segment operating
        profit                3.4%       2.9%       4.9%       3.2%       3.6%
 
     Eckerd drugstores
     Total Drugstores sales
      inc/(decr)             18.8%      21.5%      20.9%      20.3%      20.4%
       Comp store sales
        inc/(decr)           12.3%      10.5%       9.6%       9.5%      10.7%
 
     Ratios as a % of sales
       FIFO gross margin     25.2%      25.0%      23.8%      23.8%      24.5%
       LIFO charge             12         12         12         16         52
       LIFO gross margin     24.8%      24.6%      23.4%      23.3%      24.0%
       SG&A expenses         20.6%      22.0%      22.6%      21.1%      21.6%
       Segment operating
        profit                4.2%       2.6%       0.8%       2.2%       2.4%
 
     Effective Tax Rate from
      continuing operations
      before the effects of
      non-comparable items   37.9%      39.0%      34.5%      22.8%      34.4%
 
 
                         Supplemental Data (unaudited)
 
      JCPenney Company, Inc.
      Results of Continuing Operations and Segment Operating Data
      Fiscal 1996 to 2000
      ($ in millions, except per share data)
 
 
                                                      1998
                                  1st Qtr  2nd Qtr  3rd Qtr  4th Qtr     Year
     Retail sales
       Department stores           $3,343   $3,233   $3,673   $4,977   $15,226
       Catalog                        913      863    1,047    1,387     4,210
       Eckerd drugstores            2,564    2,450    2,490    2,821    10,325
       Total retail sales           6,820    6,546    7,210    9,185    29,761
 
     Margins and expenses before
      the effects of non-comparable
      items
     Gross margin - LIFO
       Department stores
        and catalog                 1,550    1,423    1,741    1,921     6,635
       Eckerd drugstores              662      632      619      690     2,603
       Total gross margin           2,212    2,055    2,360    2,611     9,238
 
     SG&A expenses
       Department stores
        and catalog                (1,337)  (1,288)  (1,434)  (1,656)   (5,715)
       Eckerd drugstores             (543)    (551)    (555)    (586)   (2,235)
       Total SG&A expenses         (1,880)  (1,839)  (1,989)  (2,242)   (7,950)
 
     Segment operating profit/
      (loss) - LIFO before the
      effects of non-comparable
      items
       Department stores and catalog  213      135      307      265       920
       Eckerd drugstores              119       81       64      104       368
       Total segment operating
        profit/(loss) before the
        effects of non-comparable
        items                         332      216      371      369     1,288
 
     Corporate and other unallocated    6       (7)       6       13        18
     Net interest expense and
      credit operations               (72)     (95)    (120)    (100)     (387)
     Acquisition amortization         (35)     (18)     (14)     (45)     (112)
     Income/(loss) from continuing
      operations before the effects
      of non-comparable items         231       96      243      237       807
 
     Other non-comparable items
       Gross margin
         Department stores and
          catalog                     ---      ---      ---      ---       ---
         Eckerd drugstores            ---      (98)     ---      ---       (98)
       SG&A expenses
         Eckerd drugstores            ---      (16)     ---      ---       (16)
       Centralized merchandising
         process costs (ACT)          ---      ---      ---      ---       ---
     Restructuring charges            ---      ---      ---       22        22
      Total non-comparable items      ---     (114)     ---       22       (92)
     (Loss)/income from continuing
      operations before income taxes  231      (18)     243      259       715
 
     Income taxes                      91       (4)      97       93       277
     (Loss)/ income from continuing
      operations                     $140     $(14)    $146     $166      $438
 
 
                         Supplemental Data (unaudited)
 
      JCPenney Company, Inc.
      Results of Continuing Operations and Segment Operating Data
      Fiscal 1996 to 2000
      ($ in millions, except per share data)
 
                                                      1998
                                  1st Qtr  2nd Qtr  3rd Qtr  4th Qtr     Year
 
     Earnings/(loss) per share from
      continuing operations before the
      effects of non-comparable items
       Basic                        $0.52    $0.20    $0.53    $0.56     $1.81
       Diluted                      $0.51    $0.20    $0.52    $0.56     $1.81
 
     (Loss)/earnings per share from
      continuing operations
       Basic                        $0.52   $(0.08)   $0.53    $0.61     $1.58
       Diluted                      $0.51   $(0.08)   $0.52    $0.61     $1.58
 
     Shares
       Basic                        252.2    253.5    254.1    251.4     252.8
       Full dilution                272.0    272.4    272.3    269.2     271.2
 
     Ratios are before the effects of
       non-comparable items
 
     Department Stores and Catalog
     Department Stores sales
      inc/(decr)                      1.2%    -2.7%    -5.5%    -7.7%     -4.3%
     Comp store sales inc/(decr)      1.9%    -2.5%    -4.0%    -2.8%     -1.9%
     Catalog sales inc/(decr)         1.0%     1.4%     3.7%    -5.3%     -0.4%
 
     Ratios as a % of sales
       FIFO gross margin             36.4%    34.7%    36.9%    29.6%     34.0%
       LIFO charge/(credit)           ---      ---      ---      (35)      (35)
       LIFO gross margin             36.4%    34.7%    36.9%    30.2%     34.1%
       SG&A expenses                 31.4%    31.4%    30.4%    26.0%     29.4%
       Segment operating profit       5.0%     3.3%     6.5%     4.2%      4.7%
 
     Eckerd drugstores
     Total Drugstores sales
      inc/(decr)                      9.6%     7.6%     9.2%     2.0%      6.9%
       Comp store sales inc/(decr)    8.0%     9.0%    10.0%    10.1%      9.2%
 
     Ratios as a % of sales
       FIFO gross margin             26.2%    26.1%    25.3%    25.1%     25.6%
       LIFO charge                      9        8       10       18        45
       LIFO gross margin             25.8%    25.8%    24.9%    24.5%     25.2%
       SG&A expenses                 21.2%    22.5%    22.3%    20.8%     21.6%
       Segment operating profit       4.6%     3.3%     2.6%     3.7%      3.6%
 
     Effective Tax Rate from
      continuing operations before the
      effects of non-comparable
      items                          39.4%    41.7%    39.9%    35.4%     38.7%
 
 
                         Supplemental Data (unaudited)
 
      JCPenney Company, Inc.
      Results of Continuing Operations and Segment Operating Data
      Fiscal 1996 to 2000
      ($ in millions, except per share data)
 
 
                                                    1997       1996
                                                    Year       Year
     Retail sales
       Department stores                          $15,904    $15,568
       Catalog                                      4,229      4,076
       Eckerd drugstores                            9,663      3,160
       Total retail sales                          29,796     22,804
 
     Margins and expenses before the effects
       of non-comparable items
     Gross margin - LIFO
       Department stores and catalog                7,031      6,753
       Eckerd drugstores                            2,449        825
       Total gross margin                           9,480      7,578
 
     SG&A expenses
       Department stores and catalog               (5,756)    (5,664)
       Eckerd drugstores                           (2,057)      (695)
       Total SG&A expenses                         (7,813)    (6,359)
 
     Segment operating profit/(loss) - LIFO
       before the effects of non-comparable items
       Department stores and catalog                1,275      1,089
       Eckerd drugstores                              392        130
       Total segment operating profit/(loss)
        before the effects of non-comparable items  1,667      1,219
 
     Corporate and other unallocated                   18         38
     Net interest expense and credit operations      (454)      (184)
     Acquisition amortization                        (117)       (23)
     Income/(loss) from continuing operations
       before the effects of non-comparable
       items                                        1,114      1,050
     Other non-comparable items
       Gross margin
        Department stores and catalog                 ---        ---
        Eckerd drugstores                             (45)       (31)
       SG&A expenses
        Eckerd drugstores                             ---        ---
       Centralized merchandising process costs (ACT)  ---        ---
     Restructuring charges                           (379)      (303)
      Total non-comparable items                     (424)      (334)
     (Loss)/income from continuing operations
       before income taxes                            690        716
     Income taxes                                     277        276
     (Loss)/ income from continuing operations       $413       $440
 
 
                         Supplemental Data (unaudited)
 
      JCPenney Company, Inc.
      Results of Continuing Operations and Segment Operating Data
      Fiscal 1996 to 2000
      ($ in millions, except per share data)
 
 
                                                    1997       1996
                                                    Year       Year
 
     Earnings/(loss) per share from continuing
      operations before the effects of non-
      comparable items
       Basic                                        $2.37      $2.56
       Diluted                                      $2.35      $2.54
 
     (Loss)/earnings per share from continuing
      operations
       Basic                                        $1.49      $1.75
       Diluted                                      $1.49      $1.75
 
     Shares
       Basic                                        247.4      226.4
       Full dilution                                268.1      248.5
 
     Ratios are before the effects of
       non-comparable items
 
     Department Stores and Catalog
     Department Stores sales inc/(decr)               2.2%       5.1%
     Comp store sales inc/(decr)                     -0.3%       3.4%
     Catalog sales inc/(decr)                         3.8%       0.5%
 
     Ratios as a % of sales
       FIFO gross margin                             34.8%      34.3%
       LIFO charge/(credit)                           (20)       (20)
       LIFO gross margin                             34.9%      34.4%
       SG&A expenses                                 28.6%      28.9%
       Segment operating profit                       6.3%       5.5%
 
     Eckerd drugstores
     Total Drugstores sales inc/(decr)               11.2%      10.3%
       Comp store sales inc/(decr)                    7.4%       7.8%
 
     Ratios as a % of sales
       FIFO gross margin                             25.7%      26.3%
       LIFO charge                                     32          5
       LIFO gross margin                             25.3%      26.1%
       SG&A expenses                                 21.2%      22.0%
       Segment operating profit                       4.1%       4.1%
 
     Effective Tax Rate from continuing operations
       before the effects of non-comparable items    39.7%      37.6%
 
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SOURCE J. C. Penney Company, Inc.
    PLANO, Texas, April 26 /PRNewswire/ -- J. C. Penney Company, Inc.
 (NYSE:   JCP) today issued supplemental unaudited information to provide
 historical data on a quarterly basis, reflecting certain reclassifications
 consistent with information provided on an annual basis as presented in the
 Company's Annual Report and Form 10-K for the year ended January 27, 2001.
 This information, which presents operating results from continuing operations,
 facilitates analysis of the Company's operating results and segment operating
 data.  The attached schedules exclude the results of J. C. Penney Direct
 Marketing Services, Inc. (DMS).  As previously announced, DMS is being sold
 and consequently, its results are being reported as a discontinued operation.
 In addition, these schedules reflect the reclassification of shipping and
 handling fees and expenses as well as rent and occupancy expenses, neither of
 which had an impact on reported earnings or earnings per share.  These
 reclassifications are described in more detail in the Company's Annual Report.
     The attached supplemental unaudited information provides results of
 operations and segment operating data on a continuing basis (i.e., before the
 effects of previously reported restructuring charges and other non-comparable
 items).  Restructuring charges and other non-comparable items are shown
 separately for each period affected.
     J. C. Penney Company, Inc. is one of America's largest department store,
 drugstore, catalog and e-commerce retailers, employing approximately
 270,000 associates.  The Company operates approximately 1,100 JCPenney
 department stores in all 50 states, Puerto Rico, and Mexico.  In addition, the
 Company operates approximately 50 Renner department stores in Brazil.  Eckerd
 operates approximately 2,650 drugstores throughout the Southeast, Sunbelt, and
 Northeast regions of the U.S.  JCPenney Catalog, including e-commerce, is the
 nation's largest catalog merchant of general merchandise.  J. C. Penney
 Company, Inc. is the sponsor of JCPenney Afterschool, a partnership committed
 to providing kids with high-quality afterschool programs to help them reach
 their full potential.
     This release may contain forward-looking statements within the meaning of
 the Private Securities Litigation Reform Act of 1995.  Such forward-looking
 statements, which reflect the Company's current views of future events and
 financial performance, involve known and unknown risks and uncertainties that
 may cause the Company's actual results to be materially different from planned
 or expected results.  Those risks and uncertainties include but are not
 limited to, competition, consumer demand, seasonality, economic conditions,
 and government activity.  Investors should take such risks into account when
 making investment decisions.
 
                         Supplemental Data (unaudited)
 
      JCPenney Company, Inc.
      Results of Continuing Operations and Segment Operating Data
      Fiscal 1996 to 2000
      ($ in millions, except per share data)
 
                                                 2000
                           1st Qtr   2nd Qtr    3rd Qtr    4th Qtr     Year
 
     Retail sales
       Department stores   $3,199     $3,177     $3,415     $4,794    $14,585
       Catalog                997        896        987      1,293      4,173
       Eckerd drugstores    3,332      3,134      3,136      3,486     13,088
       Total retail sales   7,528      7,207      7,538      9,573     31,846
 
     Margins and expenses
      before the effects
      of non-comparable items
     Gross margin - LIFO
       Department stores
        and catalog         1,539      1,389      1,493      1,635      6,056
       Eckerd drugstores      751        711        676        817      2,955
       Total gross margin   2,290      2,100      2,169      2,452      9,011
 
     SG&A expenses
       Department stores
        and catalog        (1,372)    (1,315)    (1,412)    (1,611)    (5,710)
       Eckerd drugstores     (703)      (709)      (739)      (764)    (2,915)
       Total SG&A
        expenses           (2,075)    (2,024)    (2,151)    (2,375)    (8,625)
 
     Segment operating
      profit/(loss) - LIFO
      before the effects
      of non-comparable items
       Department stores
        and catalog           167         74         81         24        346
       Eckerd drugstores       48          2        (63)        53         40
       Total segment operating
        profit/(loss) before
        the effects of non-
        comparable items      215         76         18         77        386
 
     Corporate and other
      unallocated               7        ---         11         10         28
     Net interest expense
      and credit
      operations             (113)      (102)      (110)      (102)      (427)
     Acquisition
      amortization            (36)       (22)       (18)       (46)      (122)
     Income/(loss) from
      continuing operations
      before the effects of
      non-comparable items     73        (48)       (99)       (61)      (135)
     Other non-comparable items
       Gross margin
         Department stores
          and catalog         ---        ---        ---        (92)       (92)
         Eckerd drugstores    (66)         5        ---        (43)      (104)
       SG&A expenses
         Eckerd drugstores    (12)       ---        ---        ---        (12)
       Centralized
        merchandising process
        costs (ACT)           (14)       (11)       (15)       (15)       (55)
     Restructuring charges   (232)        25          3       (284)      (488)
      Total non-comparable
      items                  (324)        19        (12)      (434)      (751)
     (Loss)/income from
      continuing
      operations before
      income taxes           (251)       (29)      (111)      (495)      (886)
     Income taxes             (95)       (10)       (41)      (172)      (318)
     (Loss)/ income from
      continuing
      operations            $(156)      $(19)      $(70)     $(323)     $(568)
 
 
                         Supplemental Data (unaudited)
 
      JCPenney Company, Inc.
      Results of Continuing Operations and Segment Operating Data
      Fiscal 1996 to 2000
      ($ in millions, except per share data)
 
                                                 2000
                           1st Qtr   2nd Qtr    3rd Qtr    4th Qtr     Year
 
     Earnings/(loss) per
      share from continuing
      operations before the
      effects of non-comparable
      items
       Basic                $0.13     $(0.15)    $(0.24)    $(0.18)    $(0.44)
       Diluted              $0.13     $(0.15)    $(0.24)    $(0.18)    $(0.44)
 
     (Loss)/earnings per
      share from continuing
      operations
       Basic               $(0.63)    $(0.10)    $(0.30)    $(1.26)    $(2.29)
       Diluted             $(0.63)    $(0.10)    $(0.30)    $(1.26)    $(2.29)
 
     Shares
       Basic                261.2      261.6      262.0      262.4      261.8
       Full dilution        275.7      275.8      275.8      277.1      276.2
 
     Ratios are before the
      effects of non-
      comparable items
 
     Department Stores and Catalog
     Department Stores sales
      inc/(decr)             -3.0%      -2.2%      -4.5%      -2.2%      -2.9%
     Comp store sales
      inc/(decr)              3.1%      -1.5%      -3.7%      -2.0%      -2.4%
     Catalog sales
      inc/(decr)              0.2%       1.8%      -6.1%      -5.2%      -2.7%
 
     Ratios as a % of sales
       FIFO gross margin     36.7%      34.1%      33.9%      27.1%      32.4%
       LIFO charge/(credit)   ---        ---        ---         14         14
       LIFO gross margin     36.7%      34.1%      33.9%      26.9%      32.3%
       SG&A expenses         32.7%      32.3%      32.1%      26.5%      30.5%
       Segment operating
        profit                4.0%       1.8%       1.8%       0.4%       1.8%
 
     Eckerd drugstores
     Total Drugstores sales
      inc/(decr)              9.4%       5.3%       4.2%       2.7%       5.3%
     Comp store sales
      inc/(decr)              6.9%       9.7%       9.1%       8.1%       8.5%
 
     Ratios as a % of sales
       FIFO gross margin     22.9%      23.1%      22.0%      23.9%      23.0%
       LIFO charge             12         13         13         17         55
       LIFO gross margin     22.5%      22.7%      21.6%     23.4%       22.6%
       SG&A expenses         21.1%      22.6%      23.6%     21.9%       22.3%
       Segment operating
        profit                1.4%       0.1%      -2.0%      1.5%        0.3%
 
     Effective Tax Rate from
      continuing
      operations before      39.7%      35.4%      42.4%     36.1%       38.5%
      the effects of non-
      comparable items
 
 
                         Supplemental Data (unaudited)
 
      JCPenney Company, Inc.
      Results of Continuing Operations and Segment Operating Data
      Fiscal 1996 to 2000
      ($ in millions, except per share data)
 
 
                                                 1999
                           1st Qtr   2nd Qtr    3rd Qtr    4th Qtr     Year
     Retail sales
       Department stores   $3,297     $3,248     $3,577     $4,904    $15,026
       Catalog                995        880      1,051      1,364      4,290
       Eckerd drugstores    3,047      2,976      3,011      3,393     12,427
       Total retail sales   7,339      7,104      7,639      9,661     31,743
 
     Margins and expenses
      before the effects
      of non-comparable items
     Gross margin - LIFO
       Department stores and
        catalog             1,545      1,446      1,710      1,864      6,565
       Eckerd drugstores      757        732        706        792      2,987
       Total gross margin   2,302      2,178      2,416      2,656      9,552
 
     SG&A expenses
       Department stores
        and catalog        (1,400)    (1,328)    (1,484)    (1,663)    (5,875)
       Eckerd drugstores     (628)      (656)      (683)      (718)    (2,685)
       Total SG&A
        expenses           (2,028)    (1,984)    (2,167)    (2,381)    (8,560)
 
     Segment operating
      profit/(loss) - LIFO
      before the effects of
      non-comparable items
       Department stores
        and catalog           145        118        226        201        690
       Eckerd drugstores      129         76         23         74        302
       Total segment operating
        profit/(loss) before
        the effects of non-
        comparable items      274        194        249        275        992
 
     Corporate and other
      unallocated               6          9         (2)       ---         13
     Net interest expense
      and credit operations   (33)       (61)       (82)      (118)      (294)
     Acquisition
      amortization            (36)       (24)       (17)       (48)      (125)
     Income/(loss) from
      continuing operations
      before the effects of
      non-comparable items    211        118        148        109        586
     Other non-comparable items
       Gross margin
         Department stores
          and catalog         ---        ---        ---        (20)       (20)
         Eckerd drugstores    ---        (74)       ---        ---        (74)
       SG&A expenses
         Eckerd drugstores    ---        (45)       ---        ---        (45)
       Centralized
        merchandising process
        costs (ACT)           ---        ---        ---        ---        ---
     Restructuring charges    ---        ---        ---       (169)      (169)
      Total non-comparable
      items                   ---       (119)       ---       (189)      (308)
     (Loss)/income from
      continuing operations
      before income taxes     211         (1)       148        (80)       278
     Income taxes              80        ---         51        (27)       104
     (Loss)/ income from
      continuing operations  $131        $(1)       $97       $(53)      $174
 
                         Supplemental Data (unaudited)
 
      JCPenney Company, Inc.
      Results of Continuing Operations and Segment Operating Data
      Fiscal 1996 to 2000
      ($ in millions, except per share data)
 
                                                 1999
                           1st Qtr   2nd Qtr    3rd Qtr    4th Qtr     Year
 
     Earnings/(loss) per
      share from continuing
      operations before the
      effects of non-comparable
      items
       Basic                $0.48      $0.24      $0.34      $0.30      $1.36
       Diluted              $0.48      $0.24      $0.34      $0.30      $1.36
 
     (Loss)/earnings per share
      from continuing operations
       Basic                $0.48     $(0.04)     $0.34     $(0.24)     $0.54
       Diluted              $0.48     $(0.04)     $0.34     $(0.24)     $0.54
 
     Shares
       Basic                256.2      260.3      260.5      260.7      259.4
       Full dilution        272.3      276.1      276.2      276.0      275.1
 
     Ratios are before the
      effects of non-comparable
      items
 
     Department Stores and Catalog
     Department Stores sales
      inc/(decr)             -1.4%      0.5%       -2.6%      -1.5%      -1.3%
     Comp store sales
      inc/(decr)             -0.5%      1.0%       -3.0%      -1.4%      -1.1%
     Catalog sales
      inc/(decr)              9.0%      2.0%        0.4%      -1.7%       1.9%
 
     Ratios as a % of sales
       FIFO gross margin     36.0%     35.0%       36.9%      29.6%      33.9%
       LIFO charge/(credit)   ---        ---        ---         (9)        (9)
       LIFO gross margin     36.0%      35.0%      37.0%      29.7%      34.0%
       SG&A expenses         32.6%      32.1%      32.1%      26.5%      30.4%
       Segment operating
        profit                3.4%       2.9%       4.9%       3.2%       3.6%
 
     Eckerd drugstores
     Total Drugstores sales
      inc/(decr)             18.8%      21.5%      20.9%      20.3%      20.4%
       Comp store sales
        inc/(decr)           12.3%      10.5%       9.6%       9.5%      10.7%
 
     Ratios as a % of sales
       FIFO gross margin     25.2%      25.0%      23.8%      23.8%      24.5%
       LIFO charge             12         12         12         16         52
       LIFO gross margin     24.8%      24.6%      23.4%      23.3%      24.0%
       SG&A expenses         20.6%      22.0%      22.6%      21.1%      21.6%
       Segment operating
        profit                4.2%       2.6%       0.8%       2.2%       2.4%
 
     Effective Tax Rate from
      continuing operations
      before the effects of
      non-comparable items   37.9%      39.0%      34.5%      22.8%      34.4%
 
 
                         Supplemental Data (unaudited)
 
      JCPenney Company, Inc.
      Results of Continuing Operations and Segment Operating Data
      Fiscal 1996 to 2000
      ($ in millions, except per share data)
 
 
                                                      1998
                                  1st Qtr  2nd Qtr  3rd Qtr  4th Qtr     Year
     Retail sales
       Department stores           $3,343   $3,233   $3,673   $4,977   $15,226
       Catalog                        913      863    1,047    1,387     4,210
       Eckerd drugstores            2,564    2,450    2,490    2,821    10,325
       Total retail sales           6,820    6,546    7,210    9,185    29,761
 
     Margins and expenses before
      the effects of non-comparable
      items
     Gross margin - LIFO
       Department stores
        and catalog                 1,550    1,423    1,741    1,921     6,635
       Eckerd drugstores              662      632      619      690     2,603
       Total gross margin           2,212    2,055    2,360    2,611     9,238
 
     SG&A expenses
       Department stores
        and catalog                (1,337)  (1,288)  (1,434)  (1,656)   (5,715)
       Eckerd drugstores             (543)    (551)    (555)    (586)   (2,235)
       Total SG&A expenses         (1,880)  (1,839)  (1,989)  (2,242)   (7,950)
 
     Segment operating profit/
      (loss) - LIFO before the
      effects of non-comparable
      items
       Department stores and catalog  213      135      307      265       920
       Eckerd drugstores              119       81       64      104       368
       Total segment operating
        profit/(loss) before the
        effects of non-comparable
        items                         332      216      371      369     1,288
 
     Corporate and other unallocated    6       (7)       6       13        18
     Net interest expense and
      credit operations               (72)     (95)    (120)    (100)     (387)
     Acquisition amortization         (35)     (18)     (14)     (45)     (112)
     Income/(loss) from continuing
      operations before the effects
      of non-comparable items         231       96      243      237       807
 
     Other non-comparable items
       Gross margin
         Department stores and
          catalog                     ---      ---      ---      ---       ---
         Eckerd drugstores            ---      (98)     ---      ---       (98)
       SG&A expenses
         Eckerd drugstores            ---      (16)     ---      ---       (16)
       Centralized merchandising
         process costs (ACT)          ---      ---      ---      ---       ---
     Restructuring charges            ---      ---      ---       22        22
      Total non-comparable items      ---     (114)     ---       22       (92)
     (Loss)/income from continuing
      operations before income taxes  231      (18)     243      259       715
 
     Income taxes                      91       (4)      97       93       277
     (Loss)/ income from continuing
      operations                     $140     $(14)    $146     $166      $438
 
 
                         Supplemental Data (unaudited)
 
      JCPenney Company, Inc.
      Results of Continuing Operations and Segment Operating Data
      Fiscal 1996 to 2000
      ($ in millions, except per share data)
 
                                                      1998
                                  1st Qtr  2nd Qtr  3rd Qtr  4th Qtr     Year
 
     Earnings/(loss) per share from
      continuing operations before the
      effects of non-comparable items
       Basic                        $0.52    $0.20    $0.53    $0.56     $1.81
       Diluted                      $0.51    $0.20    $0.52    $0.56     $1.81
 
     (Loss)/earnings per share from
      continuing operations
       Basic                        $0.52   $(0.08)   $0.53    $0.61     $1.58
       Diluted                      $0.51   $(0.08)   $0.52    $0.61     $1.58
 
     Shares
       Basic                        252.2    253.5    254.1    251.4     252.8
       Full dilution                272.0    272.4    272.3    269.2     271.2
 
     Ratios are before the effects of
       non-comparable items
 
     Department Stores and Catalog
     Department Stores sales
      inc/(decr)                      1.2%    -2.7%    -5.5%    -7.7%     -4.3%
     Comp store sales inc/(decr)      1.9%    -2.5%    -4.0%    -2.8%     -1.9%
     Catalog sales inc/(decr)         1.0%     1.4%     3.7%    -5.3%     -0.4%
 
     Ratios as a % of sales
       FIFO gross margin             36.4%    34.7%    36.9%    29.6%     34.0%
       LIFO charge/(credit)           ---      ---      ---      (35)      (35)
       LIFO gross margin             36.4%    34.7%    36.9%    30.2%     34.1%
       SG&A expenses                 31.4%    31.4%    30.4%    26.0%     29.4%
       Segment operating profit       5.0%     3.3%     6.5%     4.2%      4.7%
 
     Eckerd drugstores
     Total Drugstores sales
      inc/(decr)                      9.6%     7.6%     9.2%     2.0%      6.9%
       Comp store sales inc/(decr)    8.0%     9.0%    10.0%    10.1%      9.2%
 
     Ratios as a % of sales
       FIFO gross margin             26.2%    26.1%    25.3%    25.1%     25.6%
       LIFO charge                      9        8       10       18        45
       LIFO gross margin             25.8%    25.8%    24.9%    24.5%     25.2%
       SG&A expenses                 21.2%    22.5%    22.3%    20.8%     21.6%
       Segment operating profit       4.6%     3.3%     2.6%     3.7%      3.6%
 
     Effective Tax Rate from
      continuing operations before the
      effects of non-comparable
      items                          39.4%    41.7%    39.9%    35.4%     38.7%
 
 
                         Supplemental Data (unaudited)
 
      JCPenney Company, Inc.
      Results of Continuing Operations and Segment Operating Data
      Fiscal 1996 to 2000
      ($ in millions, except per share data)
 
 
                                                    1997       1996
                                                    Year       Year
     Retail sales
       Department stores                          $15,904    $15,568
       Catalog                                      4,229      4,076
       Eckerd drugstores                            9,663      3,160
       Total retail sales                          29,796     22,804
 
     Margins and expenses before the effects
       of non-comparable items
     Gross margin - LIFO
       Department stores and catalog                7,031      6,753
       Eckerd drugstores                            2,449        825
       Total gross margin                           9,480      7,578
 
     SG&A expenses
       Department stores and catalog               (5,756)    (5,664)
       Eckerd drugstores                           (2,057)      (695)
       Total SG&A expenses                         (7,813)    (6,359)
 
     Segment operating profit/(loss) - LIFO
       before the effects of non-comparable items
       Department stores and catalog                1,275      1,089
       Eckerd drugstores                              392        130
       Total segment operating profit/(loss)
        before the effects of non-comparable items  1,667      1,219
 
     Corporate and other unallocated                   18         38
     Net interest expense and credit operations      (454)      (184)
     Acquisition amortization                        (117)       (23)
     Income/(loss) from continuing operations
       before the effects of non-comparable
       items                                        1,114      1,050
     Other non-comparable items
       Gross margin
        Department stores and catalog                 ---        ---
        Eckerd drugstores                             (45)       (31)
       SG&A expenses
        Eckerd drugstores                             ---        ---
       Centralized merchandising process costs (ACT)  ---        ---
     Restructuring charges                           (379)      (303)
      Total non-comparable items                     (424)      (334)
     (Loss)/income from continuing operations
       before income taxes                            690        716
     Income taxes                                     277        276
     (Loss)/ income from continuing operations       $413       $440
 
 
                         Supplemental Data (unaudited)
 
      JCPenney Company, Inc.
      Results of Continuing Operations and Segment Operating Data
      Fiscal 1996 to 2000
      ($ in millions, except per share data)
 
 
                                                    1997       1996
                                                    Year       Year
 
     Earnings/(loss) per share from continuing
      operations before the effects of non-
      comparable items
       Basic                                        $2.37      $2.56
       Diluted                                      $2.35      $2.54
 
     (Loss)/earnings per share from continuing
      operations
       Basic                                        $1.49      $1.75
       Diluted                                      $1.49      $1.75
 
     Shares
       Basic                                        247.4      226.4
       Full dilution                                268.1      248.5
 
     Ratios are before the effects of
       non-comparable items
 
     Department Stores and Catalog
     Department Stores sales inc/(decr)               2.2%       5.1%
     Comp store sales inc/(decr)                     -0.3%       3.4%
     Catalog sales inc/(decr)                         3.8%       0.5%
 
     Ratios as a % of sales
       FIFO gross margin                             34.8%      34.3%
       LIFO charge/(credit)                           (20)       (20)
       LIFO gross margin                             34.9%      34.4%
       SG&A expenses                                 28.6%      28.9%
       Segment operating profit                       6.3%       5.5%
 
     Eckerd drugstores
     Total Drugstores sales inc/(decr)               11.2%      10.3%
       Comp store sales inc/(decr)                    7.4%       7.8%
 
     Ratios as a % of sales
       FIFO gross margin                             25.7%      26.3%
       LIFO charge                                     32          5
       LIFO gross margin                             25.3%      26.1%
       SG&A expenses                                 21.2%      22.0%
       Segment operating profit                       4.1%       4.1%
 
     Effective Tax Rate from continuing operations
       before the effects of non-comparable items    39.7%      37.6%
 
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 SOURCE  J. C. Penney Company, Inc.