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J.C. Penney Slashes Outlook

J.C. Penney stock is slipping after the department store cut its full-year outlook.

NEW YORK (

TheStreet

) --

J.C. Penney

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(JCP) - Get Report

swung to a profit in the second quarter, but its outlook for the remainder of the back-to-school season and 2010 remains tepid.

The department store cut its full-year outlook to $1.40 to $1.50 per share, undercutting from prior guidance of $1.64, citing "uncertain consumer climate." Its third-quarter guidance also fell short of Wall Street's, as management is calling for 16 cents to 20 cents a share. Analysts are looking for 23 cents a share in the third quarter.

As a result, shares are falling 1.9% to $20.40 in premarket trading.

During the second-quarter, J.C. Penney earned $14 million, or 6 cents per share, compared with a loss of $1 million, or break even, in the year-ago period. Analysts were calling for a profit of 5 cents per share.

Sales remained steady at $3.94 billion, but fell short of Wall Street's forecast of $4.01 billion. Same-store sales rose 1%.

-- Reported by Jeanine Poggi in New York.

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