UPDATE 1-Penney says growth plan timeframe been 'elongated'

(Recasts, new throughout, adds CEO comments)

NEW YORK, April 15 (Reuters) - J.C. Penney Co Inc (JCP.N) will likely need more time to meet its current five-year growth plan as the department store operator confronts one of the most unpredictable retail environments its chief executive has seen in almost four decades in the business.

"I've been in the business 39 years. I don't think I've ever seen an environment that was as unpredictable as the current environment," said Myron "Mike" Ullman at the first day of the company's two-day analyst meeting. His comments were broadcast over the Internet.

At its analyst meeting last year, Ullman unveiled an aggressive 2007-2011 growth plan that included opening 250 new stores over the next five years and a 16 percent compound annual growth rate in earnings per share for 2008-2011.

But Penney's sales have been battered by the weakening U.S. economy, and last week it said its March sales at department stores open at least a year fell 12.3 percent as skittish consumers cut back on discretionary spending.

Of the 2007-2011 plan, Ullman said: "That timeframe has probably been elongated somewhat based on the current environment."

To navigate the tough climate, he said Penney has developed a "bridge" plan that involves moderating, maintaining and accelerating different aspects of its business.

Penney has moderated its plan for new store openings and major store renovations this year, he said. It will also moderate the amount of inventory it stocks in its stores to respond to lower consumer demand.

But he said the retailer will maintain its commitment to important private brands such as American Living, which Penney introduced in February. American Living marked the largest merchandise launch in the retailer's history, and Ullman said the line is meeting its expectations.

He also said Penney will maintain its commitment to adding Sephora cosmetic centers to its locations. Sephora is a "wild success," he said, and is selling well despite the fact that Penney does not discount the merchandise.

To help increase sales, he said Penney will accelerate its efforts to integrate merchandising and marketing across its catalog, Internet and store divisions to send a clearer, united message to its shoppers.

The best way to navigate the tough environment and gain market share in this climate is to have a "laser-like" focus on business and not chase acquisition opportunities, he said.

"We do not believe going out and getting into some kind of trouble by acquiring something is the right way to run the business during this time," he said. (Reporting by Nicole Maestri; Editing by Gary Hill & Ian Geoghegan)