JC Penney Profit Drops, Forecast Falls Short

JCPenney said Friday third-quarter profit fell as same-store sales for the period fell 10 percent.

JC Penney
JC Penney

The department store operator also issued a forecast for the fourth-quarter that is lower than analysts were expecting, and warned that it expects challenging conditions to persist well into 2009.

The company said it is well-positioned in the current environment.

JCPenney's third-quarter profit fell to $124 million, or 55 cents a share, from $261 million, or $1.17, a year earlier.

Sales fell 8.7% to $4.32 billion.

The company forecast fourth-quarter profit of 90 cents to $1.05 a share with sales declining as much as 9%.

Analysts, on average, estimated the department store operator to earn 53 cents a share in the third quarter and $1.32 for the fourth quarter, according to Thomson Reuters.