Kohl's, Penney, See Income Fall in Quarter

Menomonee Falls, WI, Nov. 14, 2008--Kohl's Corp. and JC Penney both reported that their profit fell in the third quarter.

Kohl's said that third-quarter net income dropped 17% amid higher operating expenses.

For the quarter ended Nov. 1, the department-store chain reported net income of $160.2 million, or $0.52  a share, down from $194 million, or $0.61 a share, a year earlier.

As Kohl's reported last week, net sales slid 0.6% to $3.8 billion and same- store sales fell 6.7%.

The company told investors on a conference call that Kohl's last week launched its most aggressive holiday marketing campaign in the company's history. He said the campaign will feature aggressive discounting, frequent sales and an easier online shopping experience.

The company said it expects the holiday season to be the most challenging in years.

Kohl's, which owns 35% of its stores and leases the rest, plans to open about 50 new stores and remodel 60 in 2009.

Also, J.C. Penney Co. said Friday its third-quarter profit fell by more than half.

The company said profit for the three months ended Nov. 1 fell 52 percent to $124 million, or $0.56 per share, from $261 million, or $1.17 per share, last year.

Revenue fell 9% to $4.32 billion from $4.73 billion last year.

The company expects the weak environment will persist "well into 2009" and is planning business accordingly.