JCPenney's Key Revenue Metric Climbs In April

PLANO (AP) - JCPenney Co. Inc. said Thursday that its revenue at stores open at least a year rose 6.4 percent in April, helped by strong sales of women's and children's clothing. But Wall Street expected more rapid growth,

The department store operator raised its first-quarter earnings forecast although it remains below analysts' forecasts.

Its shares fell $1.92, or 4.9 percent, to $37.50 in morning trading.

The retailer said that its performance was buoyed by Liz Claiborne, Claiborne and Call it Spring by The Aldo Group. The Plano, Texas company has also had success with private brands including Worthington, Arizona and St. John's Bay.

But even as revenue at stores open at least a year improved, analysts polled by Thomson Reuters had expected better results, an 8.5 percent increase.

Revenue at stores open at least a year is a key indicator of a retailer's health because it excludes results from stores opened or closed during the year.

Its strongest region was the Southeast, but many regions dealt with unseasonable and poor weather during the period, hurting sales and customer traffic.

Total revenue for the period ended April 30 rose 3.4 percent to $1.26 billion.

JCPenney now expects first-quarter earnings of about 24 cents per share. It previously predicted earnings between 18 cents and 23 cents per share. But analysts surveyed by FactSet expect earnings of 26 cents per share.

JCPenney will report its first-quarter results on May 16. The company runs more than 1,100 department stores in the U.S. and Puerto Rico.

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