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Penney’s Profits Fall 35.7 Percent

Chairman and chief executiveofficer Myron "Mike" Ullman III cites weak economic conditions in the second quarter.

J.C. Penney Co. Inc. was not immune to what chairman and chief executive officer Myron ³Mike² Ullman III called weak economic conditions in the second quarter.

The department store company reported a 35.7 percent slide in second-quarter profits Friday to $117 million, or 52 cents a diluted share, from $182 million, or 81 cents a share in the same period a year ago. Sales in the
quarter ended Aug. 2 dipped 2.5 percent to $4.3 billion from $4.4 billion last year.

“In this difficult consumer environment, we have continued to focus on tightly controlling all aspects of our business, and our second quarter results show the benefits of our approach,” Ullman said.

For the first half of the year, the Plano, Tex.-based firm reported a 43.6 percent drop-off in profits to $237 million, or $1.06 a share, from $420 million, or $1.85 a share, a year ago. Sales in the same six months fell 3.8 percent to $8.4 billion from $8.7 billion last year.

For complete coverage, see Monday’s WWD.