3 Top Retailers Post Net Gains; J. C. Penney Drops

J. C. Penney, the nation’s third-largest retailer, said Tuesday that its first-quarter profit fell 26.6% from a year ago on a 1.8% gain in sales. Three other major retailers reported increased earnings, however.

Federated Department Stores, the fourth-largest general retailer, said its first-quarter profit increased 39.7%, partly due to an unusual gain.

Dayton-Hudson, the No. 5 retailer, said its profit was up 18%.

May Department Stores, ranked ninth, said its profit rose 21.7%.

Retailers operate on a fiscal year that begins in February.

New York-based Penney said net income for the three months ended April 27 totaled $50 million, compared to $69 million for the same period a year earlier. Sales edged up to $2.8 billion from $2.75 billion. Penney blamed its flat results on accelerated markdowns and promotional activities that it used to reduce inventories. In addition, selling, general, administrative and interest expenses were higher than a year earlier, the firm said.

Federated, which is based in Cincinnati, said its net income for the three-month period ended May 4 was $50 million, compared to $35.8 million. Included was a $6.6-million gain from the sale of its Boston store division. The retailer’s sales totaled $2.19 billion, compared to $2.04 billion last year.

Minneapolis-based Dayton-Hudson said its net income for the quarter ended May 4 came to $33.45 million, compared to $28.4 million in the 1984 first quarter. Sales rose 12% to $1.82 billion from $1.62 billion. Dayton-Hudson said its Target division had an outstanding performance.

May, headquartered in St. Louis, said net income for its 13 weeks, also ended May 4, came to $33.5 million, compared to $27.5 million a year ago. Sales increased 13.6% to $1.09 billion from $959.3 million.