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JCPENNEY REPORTS THIRD QUARTER RESULTS

 JCPENNEY REPORTS THIRD QUARTER RESULTS
 DALLAS, Nov. 12 /PRNewswire/ -- J.C. Penney Company, Inc.


(NYSE: JCP) reported today that net income in the third quarter totaled $116 million, or 92 cents per share, a decline of 12.9 per cent from $134 million, or $1.01 per share, in the same 1990 period. Income before taxes, however, was virtually flat, down 1.8 percent to $185 million from $188 million in the previous year.
 For the nine months ended October 26, 1991, net income of the department store and catalog retailer was $227 million, or $1.72 per share, a decrease of 38.8 percent from $371 million, or $2.78 per share, in 1990.
 In the quarter and nine months, gross profit dollars for both stores and catalog decreased due to the decline in sales volume. Gross margin, as a percent of retail sales, was 33.4 percent in the third quarter, as compared with 34.2 percent in the same 1990 period.
 Selling, general, and administrative expenses declined by 4.0 percent from the previous year's third quarter. As a per cent of retail sales, these expenses declined to 31.1 percent from 31.9 percent in last year's third quarter. Salary costs and advertising expenses continued to be well managed and were lower in both the period and nine months.
 The effective income tax rate increased to 37.0 percent in both the third quarter and nine months from 29.0 percent and 31.5 percent, respectively, in the same periods last year due largely to the expiration of tax benefits on installment sales.
 Commenting on the company's results, Chairman William R. Howell, said: "While many consumers are currently deferring purchases of big ticket items such as jewelry, furniture, and other home furnishings in JCPenney stores and catalog, sales of many apparel lines are slightly higher than last year, sparked by price reductions throughout the store. The company is well positioned with a fresh assortment of merchandise for the Holiday selling season."
 J. C. PENNEY COMPANY, INC.
 AND SUBSIDIARIES
 Consolidated Statement of Income
 (Amounts in millions except per share data)
 13 weeks ended 39 weeks ended
 Inc. Inc.
 10/26/91 10/27/91 (Dec.) 10/26/91 10/27/90 (Dec.)
 Retail sales $ 3,937 $ 3,995 (1.4) $10,826 $11,105 (2.5)

 Finance charge 150 157 (4.1) 487 504 (3.4)
 revenue
 Other revenue 113 95 17.9 329 273 20.4
 Total revenue 4,200 4,247 (1.1) 11,642 11,882 (2.0)
 Costs and expenses:
 Cost of goods
 sold, occupancy,
 buying, & ware-
 housing costs 2,621 2,627 (.2) 7,234 7,293 (.8)
 Selling, general
 & administrative
 expenses 1,225 1,276 (4.0) 3,546 3,600 (1.5)
 Costs & expenses
 of other
 businesses 91 79 15.1 272 227 19.9
 Int. expense, net 78 77 2.6 229 220 4.0
 Total 4,015 4,059 (1.1) 11,281 11,340 (.5)
 Income before
 income taxes 185 188 (1.8) 361 542 (33.4)
 Income taxes 69 54 25.5 134 171 (21.8)
 Net income $ 116 $ 134 (12.9) $ 227 $ 371 (38.8)
 Net income per
 common share:
 Primary $ .93 $ 1.07 $ 1.73 $ 2.91
 Fully diluted $ .92 $ 1.01 $ 1.72 $ 2.78
 SUPPLEMENTAL DATA
 Average shares:
 Primary 116.8 116.9 116.8 118.7
 Fully diluted 128.3 128.6 128.3 130.4
 Gross margin
 retail sales 33.4 34.2 33.2 34.3
 SG&A
 sales
 Effective income
 tax rates 37.0 29.0 37.0 31.5
 LIFO pre-tax $ 10 $ 20 $ 25 $ 35
 charge
 Total receivables
 serviced -- -- $3,992 $4,256
 FIFO Inventory -- -- $3,939 $3,909
 -0- 11/12/91
 /CONTACT: Duncan Muir of JCPenney, 214-591-1329/
 (JCP) CO: J.C. Penney Company Inc. ST: Texas IN: REA SU: ERN SH -- NY012 -- 3336 11/12/91 09:41 EST
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No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991 Gale, Cengage Learning. All rights reserved.

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Publication:PR Newswire
Date:Nov 12, 1991
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