Big Retail Chains Report Mixed Results for Quarter

NEW YORK — J. C. Penney Co., the nation’s third-largest retailer, said Tuesday that its profit declined 21.3% in the second quarter, and No. 5 retailer Zayre Corp. said it had a $21.9-million loss.

Dayton Hudson Corp., which operates the Mervyn’s chain, said its second-quarter profit rose 24%. Chicago-based Carson Pirie Scott lost $8.1 million; it had a $45.7-million loss in the year-ago quarter.

Dallas-based Penney, which has more than 2,900 stores and catalogue centers, said it earned $81 million in the quarter, compared to $103 million in the 1987 second quarter.

Penney’s sales declined to $3.21 billion from $3.41 billion in the year-ago period.

However, for the first six months, Penney’s profit rose to $212 million from $157 million last year on sales of $6.39 billion, compared to 1987’s $6.63 billion.

Loss During Half

Penney cited an “intensely competitive environment, in which markdown and promotional activity increased, particularly in women’s sportswear” as adding to the decline.

Zayre reported a net loss of $21.9 million, contrasted with a profit of $77.3 million in the 1987 second quarter. The 1987 results included a one-time gain from the sale of a minority interest in TJX Cos. Excluding the extraordinary gain, Zayre’s 1987 second-quarter profit was $8.8 million.

For the half, Zayre said it lost $17.4 million, contrasted with earnings of $118.9 million. Excluding the extraordinary gain, the 1987 profit totaled $8.8 million.

Zayre said the loss resulted from “the disappointing performance of the Zayre Stores division,” which it said has “cut back significantly on low margin loss-leader promotions, which has had the effect of depressing sales.”

Zayre, based in Framingham, Mass., operates the fifth-largest discount department store chain in the United States. Its store names include Zayre, Hit or Miss, T. J. Maxx, B. J.’s Wholesale Club and HomeClub. Zayre has about 63,500 employees.

Profit Declines

Dayton Hudson, based in Minneapolis, said its profit rose to $28.6 million from $23 million in the 1987 period. Its revenue rose to $2.69 billion from $2.31 billion.

For the first half, Dayton Hudson said its profit fell to $59.3 million from $61.1 million in the 1987 first half as revenue rose to $5.24 billion from $4.46 billion.