Earnings Preview-J.C. Penney Co.

NEW YORK (AP) — Department-store operator J.C. Penney Co. reports earnings for the third quarter on Friday before the market opens. The following is a summary of key developments and analyst opinion related to the period.

OVERVIEW: J.C. Penney and other department store chains have faced increasing challenges as shoppers worry about job security and tight credit. But business is starting to improve and consumers are beginning to treat themselves to small indulgences.

Still, business remains weak overall. Like other retailers, Penney has been cutting inventory in response to weak spending. It also has been expanding its assortment of exclusive brands. Making their debut in September are "Cindy Crawford Style," an exclusive home furnishing and accessories collection, and JOE Joseph Abboud, a collection of men's sportswear and tailored clothing.

But Penney's biggest coup was a deal struck with Liz Claiborne Inc., announced last month. Penney will be the sole U.S. department store to sell the company's Liz Claiborne and Claiborne lines of women's wear, along with its Liz & Co. and Concepts by Claiborne brands. The deal includes accessories, shoes, household products and men's clothing, as well as women's.