The mid-tier department store operator's net income was $120 million, or 54 cents per share, for its fiscal first quarter ended May 3, compared with $238 million, or $1.04 per share, a year earlier.
NEW YORK (Reuters) - Retailer J.C. Penney Co Inc <JCP.N> reported a 50 percent drop in quarterly profit on Thursday as its middle-income shoppers pulled back on spending amid the U.S. economic downturn.
The mid-tier department store operator's net income was $120 million, or 54 cents per share, for its fiscal first quarter ended May 3, compared with $238 million, or $1.04 per share, a year earlier.
Penney's middle-income consumers have been hit hard by the weakened U.S. economy. More of their paychecks are going toward paying for necessities like food and fuel at the same time as their home values are declining and their access to credit has diminished.
Worried about their financial situation, Penney's shoppers have reined in discretionary spending, and in March, Penney warned that its first-quarter profit could be as much as 38 percent below its initial forecast.
!ADVERTISEMENT!It forecast first-quarter earnings of approximately 50 cents per share, down from a previous view of 75 to 80 cents per share.
(Reporting by Nicole Maestri; Editing by Derek Caney)
