J.C. Penney 2Q Earnings Up

Plano, TX, August 16, 2007--J.C. Penney reported second-quarter earnings that edged up nearly 2% to $182 million, or $0.81 per share, from $179 million, or $0.76 per share, a year ago.

Total sales increased nearly 4% to $4.39 billion from $4.24 billion a year ago, driven by sales of children's and women's apparel, particularly in the northwestern and southwestern regions of the country.

Analysts expected operating profit of $0.77 per share but higher sales of $4.42 billion.

The company said its back-to-school selling season is off to a good start, and it is pleased by the response to its new private lingerie brand Ambrielle and exclusive Liz & Co. and Concepts by Claiborne.

J.C. Penney raised its outlook for full-year profit forecast to $5.50 per share from a prior estimate of $5.49 per share. Analysts are seeking profit of $5.48 per share, on average.