J.C. Penney profit falls 9 percent

PLANO, Texas -- J.C. Penney Co. said Thursday its third-quarter profit fell 9 percent, hurt by weak sales in September and October, and the department store operator slashed its fourth-quarter outlook.

Its shares fell about 4 percent in premarket trading.

Earnings for the quarter ended Nov. 3 fell to $261 million, or $1.17 per share, from $287 million, or $1.26 per share, during the same period last year. Excluding 14 cents per share from state and federal tax benefits, net income was $1.03 per share.

Revenue fell 1 percent to $4.73 billion from $4.78 billion last year. Same-store sales, or sales in stores open at least one year, a key barometer of a retailer's health, fell 3.5 percent.

Analysts polled by Thomson Financial expected a profit of $1.01 per share on revenue of $4.76 billion.

The company said sales were good in early fall, but weakened "dramatically" in September and October, hurt by a difficult retail environment for consumers and unseasonable weather.

Consumers are being pressured to curb discretionary spending due to a weak housing market, credit concerns and high food and gas prices.

The company cut fourth-quarter guidance significantly, to between $1.65 and $1.80 per share from previous guidance of $2.41 per share. Analysts expect a profit of $1.98 per share.

Its shares fell $2.03, or 4.3 percent, to $44.70 in premarket trading Thursday.