• August 18, 2008

Spurned by tightfisted consumers, JCPenney says its second-quarter net income tanked 35.7%, to $117 million, while sales for the Plano, Texas-based chain dropped 2.5%, to $4.28 billion. Comparable-store sales fell 4.3%.

Describing the consumer environment as "difficult," the company says that it has seen "a good initial customer response to our new brand launches and the effectiveness of our promotional pricing actions," including such back-to-school launches as Decree, Fabulosity and Dorm Life. Its best sales performance was in women's apparel and family shoes, with continued weakness in home and fine jewelry.--Sarah Mahoney