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JCPENNEY REPORTS STRONG THIRD QUARTER AS CONSUMERS CONTINUE TO RESPOND TO VALUE

 JCPENNEY REPORTS STRONG THIRD QUARTER
 AS CONSUMERS CONTINUE TO RESPOND TO VALUE
 PLANO, Texas, Nov. 10 /PRNewswire/ -- J. C. Penney Company, Inc. (NYSE: JCP) reported today that net income in the third quarter amounted to $186 million, or $1.40 per share, an increase of 59.5 percent, from $116 million, or 92 cents per share, in the same 1991 period.
 Commenting on the third quarter, Chairman William R. Howell said, "Despite the difficult economic environment, JCPenney stores, catalog, and life insurance realized strong earnings performances during the quarter as compared with last year."
 In the third quarter, gross margin dollars improved 9.9 percent on a 10.3 percent increase in retail sales. As a percent of retail sales, gross margin was virtually the same as the previous year. Selling, general, and administrative expenses, as a percent of retail sales, improved significantly from the level of last year. These expenses continued to be well managed, increasing a modest 3.0 percent from the previous year's third quarter.
 For the nine months ended Oct. 24, 1992, net income of the department store and catalog retailer was $402 million, or $3.05 per share, a 76.9 percent increase from $227 million, or $1.72 per share, in 1991.
 Commenting on the outlook, Mr. Howell added, "Our strategy of offering a well balanced mix of basic value items and affordably priced fashion merchandise will enable JCPenney to continue to gain market share during the fourth quarter and beyond. Our customers continue to find that JCPenney private brand merchandise has similar fashionability, identical or higher quality, and lower retail prices as compared with the competition."
 J. C. PENNEY COMPANY, INC. AND SUBSIDIARIES
 SUMMARY OF OPERATING RESULTS
 (Amounts in millions except per share data)
 13 weeks ended 39 weeks ended
 Pct. Pct.
 Oct. 24, Oct. 26, Inc. Oct. 24, Oct. 26, Inc.
 1992 1991 (Dec.) 1992 1991 (Dec.)
 Retail sales $4,342 $3,937 10.3 $11,924 $10,826 10.1
 Margins and expenses
 FIFO gross margin 1,457 1,326 9.9 3,981 3,617 10.1
 LIFO credit (charge) -- (10) -- (25)
 LIFO gross margin 1,457 1,316 10.8 3,981 3,592 10.8
 Selling, general
 and administrative
 expenses (1,261) (1,225) 3.0 (3,664) (3,546) 3.3
 Finance charge
 revenue 131 150 (12.7) 428 487 (12.0)
 Interest expense,
 net (61) (78) (22.3) (191) (229) (16.6)
 Profits of other
 businesses 37 22 64.1 99 57 72.1
 Pretax income 303 185 63.5 653 361 80.8
 Income taxes (117) (69) 70.5 (251) (134) 87.6
 Net income(A) 186 116 59.5 402 227 76.9
 Earnings per share(A)
 Primary $ 1.50 $ .93 $ 3.20 $ 1.73
 Fully diluted $ 1.40 $ .92 $ 3.05 $ 1.72
 (A) 1991 YTD earnings do not include a charge of $184 million or $1.58 per share fully diluted for the cumulative effect of an accounting change for post-retirement health care benefits made last year.
 SUPPLEMENTAL DATA
 Average shares
 Primary 117.9 116.8 117.8 116.8
 Fully diluted 129.6 128.3 129.5 128.3
 FIFO gross margin pct.
 retail sales 33.6 33.7 33.4 33.4
 SG&A pct. retail
 sales 29.1 31.1 30.7 32.8
 Effective income
 tax rate 38.6 37.0 38.4 37.0
 Total receivables
 serviced -- -- $3,634 $3,992
 FIFO inventory -- -- $4,243 $3,939
 -0- 11/10/92
 /CONTACT: Duncan Muir of J. C. Penney Company, 214-591-1329/
 (JCP) CO: J. C. Penney Company, Inc. ST: Texas IN: REA SU: ERN


PS -- NY026 -- 9130 11/10/92 09:26 EST
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Date:Nov 10, 1992
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