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J.C. Penney Shines, but Federated Fumbles in June

The June numbers are out and some of the nation's biggest department store chains posted mixed results for the month.


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J.C. Penney

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reported higher monthly sales than Wall Street expected, while

Federated Department Stores


disappointed analysts and investors.

Sears said same-store sales in domestic locations fell 0.5% in June, but the company expects earnings for the second quarter to beat the consensus forecast. Analysts expected the company's comparable sales to fall 2.3% in June.

Sears also projected second-quarter earnings of 96 cents a share, excluding one-time items. The current estimate is 92 cents. The company earned $1.05 in the year-ago period. Sears also expects to record $810 million in pretax charges for one-time items in the second quarter. Total domestic store revenue for June was relatively flat at $2.81 billion.

J.C. Penney said sales at comparable department stores rose 3.8% for June, well ahead of analysts' projections of a 1.6% increase. Total department store sales rose 1.2% to $1.23 billion for the month. Same-store sales at the company's Eckerd drugstore chain rose 7% for the month. Total sales for the unit climbed 5.8% to $1.28 billion.

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The company also said it was comfortable with Wall Street's forecast for the second quarter, which calls for Penney to lose 20 cents to 25 cents a share.

Then there's Federated. The owner of




lowered its guidance for the second quarter and full year earlier this month, and the bleeding continued as the company said same-store sales for June fell 6.4% while overall sales dropped 10.4%.

Analysts were looking for a 3.5% decline. Total sales fell to $1.41 billion for June, down from $1.57 billion in the same month last year. The company attributed the shortfall, in part, to the downsizing of


and the closing of its



(For a broader look at how the retailers fared in June, check out Tim Arango's

Retailers Rally Even as Results Disappoint.)