J. C. Penney, Dillard Report Healthy Profits
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NEW YORK — J. C. Penney Co. reported a 70% jump in first-quarter profit Tuesday, reflecting what analysts said was an industrywide trend of higher earnings for companies that have controlled their costs.
Dillard Department Stores Inc., another cost-cutter, saw earnings rise 18%. The Limited Inc., which has been changing its merchandise mix at some stores, posted only a 1% rise, including a special one-time gain.
Cost controls have been key to boosting profits, analysts said, because the incipient economic recovery has not been strong enough to propel earnings alone.
“Good sales and good expense controls in particular” are necessary to produce profits, Salomon Bros. analyst Jeffrey Feiner said.
“Those retailers with expense controls are coming in strongest,” Shearson analyst Kim Walin said.
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