Reported by Star-Bulletin staff & wire
Tuesday, November 17, 1998
J.C. Penney's net falls 19 percent
PLANO, Texas -- J.C. Penney Co., the No. 2 U.S. department-store company, said fiscal third-quarter earnings fell 19 percent on lower-than-expected clothing sales.Net income fell to $186 million, or 68 cents a share, from profit before a charge of $229 million, or 85 cents, a year ago. The results were in line with the 67 cent forecast of analysts polled by First Call Corp. for the quarter ended Oct. 31. J.C. Penney blamed unusually warm fall weather, Hurricane Georges and a slowing U.S. economy for three months of declining sales at stores open at least a year that left it with a glut of clothing. It's been cutting prices as much as 50 percent to make room for new goods it can sell at full price this holiday season.
Nasdaq may delist K-Tel's stock
LOS ANGELES -- K-Tel International Inc. said it's been notified by the Nasdaq stock market that it fails to meet the minimum tangible net asset requirement for trading on the national market and faces delisting.The Internet music retailer requested a hearing before the Nasdaq listing qualifications panel to obtain a temporary extension to the requirements and a chance to raise additional capital to meet them. "There is no assurance the company will be successful in its attempt to remain listed on the Nasdaq stock market," K-Tel said. Minneapolis-based K-Tel's stock soared last week after Microsoft Corp. agreed to include K-Tel's online music and video service on its MSN Shopping channel.
Home Depot sees 31% net increase
ATLANTA -- Home Depot Inc., the largest U.S. retailer of building supplies, said fiscal third-quarter profit rose 31 percent as housing sales fueled demand for paint, tools, cabinets, lighting and flooring. Net income rose to $392 million, or 26 cents a share, from profit before a charge of $299 million, or 20 cents, a year ago.
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