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J.C. Penney posts flat 2Q profits
ANNE D'INNOCENZIO
(The Associated Press)



04:52:40AM (DST) Sunday, August 14,2011.

NEW YORK (AP) — J.C. Penney Co. reported a flat second-quarter profit on Friday as the department store retailer aggressively marked down prices on fashions to get its middle income shoppers to keep spending in an increasingly uncertain economy.

The company also issued third-quarter profit guidance that fell well below Wall Street estimates and said back-to-school shopping is starting later this year. It declined to offer a full-year outlook amid stock market turmoil fueled by fear about the economy and the downgrade of the federal debt.

"Consumer climate is clearly uncertain and the tumultuous last 10 days or so hasn't given our core customer, the middle income family, any reason to be more confident," said Myron E. Ullman, III, Penney's CEO, in an address to investors during a conference call Friday.

Penney, like many stores catering to middle-to-lower-income shoppers, faces increasing uncertainty heading into the two most important retail seasons of the year — back-to-school and the winter holiday season.

Stores are passing along higher prices on clothing to offset rising raw material costs. Still, with anxiety rising over a potential double-dip recession, the ability of retailers to raise prices going forward could fade fast. The Standard & Poor's downgrade of federal debt a week ago has increased turbulence in the stock market and rattled consumer confidence.

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J.C Penney has been America's favorite for years with its steady customers.
Most of the weekly sales you can't beat.
JCP knows the competition(Sears~Wal-Mart and others) and what they have to offer.
All and all JCP knows what the consumer wants.

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