J. C. Penney Company, Inc (NYSE: JCP), a mid-range chain of American department stores, announced the drop of its net income to $120 million, or 54 cents a share.
Last year the first-quarter income constituted $238 million, or $1.04. It means that the income decreased by half.
The main reason of low income is the limitation of markdowns on clothing. Sales in the quarter went down by 5.1 percent to $4.13 billion. Sales at stores open at least a year declined 7.4 percent, compared with a year-earlier gain of 3.4 percent.
Earlier analysts predicted that the drop would be higher, 50 cents a share.
To cure its financial state the company plans to cut future orders and make necessary discounts.
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