J.C. Penney

Retailer J.C. Penney (JCP 40.52) issued downside guidance for its fiscal first quarter (Apr), saying it sees earnings per share of $0.50 versus the $0.75 First Call consensus estimate.  The company's prior guidance was for earnings to be in the range of $0.75 to $0.80 per share.

J.C. Penney said, "With sales through the Easter holiday well below expectations, JCPenney is now guiding to a low-double digit comparable store sales decline for March and a high-single digit decline for the first quarter."  The company added that its customers "are feeling macro-economic pressures from many areas, including higher energy costs, deteriorating employment trends and significant issues in the housing and credit markets. The sharp decline in sales is reflective of these trends. While the economic stimulus package may provide some temporary benefit, we expect the continuation of a difficult environment over the course of 2008."

Be sure to check back later for added perspective on J.C. Penney's warning.  Shares of JCP are currently indicated 13% lower in pre-market action.