Penney's Profit Falls, Macy's Takes a Loss

New York, NY, May 15, 2008--Retailer J.C. Penney Co. reported a 50 percent drop in quarterly profit on Thursday as weak demand forced it to cut prices to clear unsold merchandise.

Macy's Inc. said Wednesday that it swung to a first-quarter loss, hurt by restructuring costs and increased clearance sales

Penney's net income was $120 million, or 54 cents per share, for its fiscal first quarter ended May 3, down from $238 million, or $1.04 per share, a year earlier.

Macy's posted a first-quarter net loss of $59 million, or 14 cents a share, compared with a profit of $36 million, or 8 cents a share, in the year-earlier period.

Penney's middle-income consumers have been hit hard by the weakened U.S. economy.