J C Penney Co

* Walt Disney Co. said it has signed a clothing licensing deal with J.C. Penney Co., one week after announcing a similar deal with Kmart Corp. Terms of the agreement weren't disclosed. Penney will develop and produce two new lines of Disney children's apparel, which will debut in the fall. * Guide to Our Staff: Need to reach Business section reporters or editors? A guide to the section's staff can be found at: http://www.latimes.com/bizstaff.

J.C. Penney Co. is hoping that its new turnaround strategy makes its most recent quarter - and its $87-million loss - the retail chain's last dour quarter. The company, armed with a fresh chief executive and a retooled pricing framework, said its fourth-quarter slide was caused by long-ingrained bad habits - such as deep, rolling discounts and outdated stores -- as well as by the effort to improve on them. In the period ended Jan. 28, J.C. Penney fell to a loss of 41 cents per share from a $271-million profit, or $1.13 per share, in the same quarter a year earlier.

J.C. Penney Co. said same-store sales at its department stores significantly topped its expectations in September, due in part to special sales promotions. The retailer, which also operates the Eckerd drugstore chain, said it continues to back its operating earnings forecast of 11 cents to 15 cents a share in the third quarter and 30 cents to 35 cents for fiscal 2001. The company earned 24 cents a year ago.

J.C. Penney Co. Announces Stock Split: The Dallas-based retailer declared a two-for-one split of the company's common stock and increased the quarterly cash dividend 9.1%. On a pre-split basis, the regular quarterly dividend on the company's outstanding common stock was increased 6 cents to 72 cents per share, bringing the annual rate to $2.88. On a split basis, the quarterly cash dividend was increased 3 cents to 36 cents per share, with an annual rate of $1.44.

And Now, the Mall Channel: J. C. Penney Co., GTE Corp. and Capital Cities/ABC Inc. have formed a joint venture to beam computer data, television and sound to shopping malls across the nation. The network will offer retailers music throughout their stores, ABC videos on television and a computer network that can be used for check and credit card approvals. The partners plan to have the Advanced Retail Communications network up and running next year.

Four top executives of J.C. Penney Co. retired over the weekend and two longtime managers at the troubled retailer were promoted to chief financial and information positions, the company said. Robert B. Cavanaugh, 49, was named chief financial officer, replacing Donald A. McKay, 55, who retired effective Sunday, the company said. Cavanaugh had been chief financial officer of Penney's Eckerd drugstore chain. Stephen F. Raish, 50, was named chief information officer.

J.C. Penney Co. has stepped up its ethnic marketing in California by offering a line of cosmetics specifically for Asian women. The giant retailer and Zhen Cosmetics of St. Francis, Minn., have joined a relatively small roster of marketers targeting the enormous buying power of Asians in the U.S. By any measure, they are a highly desirable target market.

J.C. Penney Co. reported that it paid new Chief Executive Allen Questrom $16.5 million of cash and stock last year, plus options potentially worth $89.6 million if he can revive the company's stock to 10% annual growth. Penney hired Questrom last July to turn around the No. 2 U.S. department store chain's stagnant sales and falling profit. Penney shares also have declined the last three calendar years, though they've rebounded about 51% so far this year.

Other earnings, excluding one-time gains or charges unless noted, include: * J.C. Penney Co. reported a fourth-quarter loss of $2 million, or 3 cents a share compared with a year-earlier operating profit of $126 million, or 45 cents, as sales declined 0.8% to $9.75 billion. Analysts had expected a deeper loss of 5 cents.

* Walt Disney Co. said it has signed a clothing licensing deal with J.C. Penney Co., one week after announcing a similar deal with Kmart Corp. Terms of the agreement weren't disclosed. Penney will develop and produce two new lines of Disney children's apparel, which will debut in the fall. * Guide to Our Staff: Need to reach Business section reporters or editors? A guide to the section's staff can be found at: http://www.latimes.com/bizstaff.

J.C. Penney Co. said it plans to shut as many as 50 department stores nationwide to cut costs as new Chairman Allen Questrom tries to revive the ailing chain and recover from the industry's worst holiday season in at least five years. In California, closures will include Penney's department stores in Susanville and Eureka as well as a catalog outlet store in the west San Fernando Valley's Fallbrook Mall.

Four top executives of J.C. Penney Co. retired over the weekend and two longtime managers at the troubled retailer were promoted to chief financial and information positions, the company said. Robert B. Cavanaugh, 49, was named chief financial officer, replacing Donald A. McKay, 55, who retired effective Sunday, the company said. Cavanaugh had been chief financial officer of Penney's Eckerd drugstore chain. Stephen F. Raish, 50, was named chief information officer.

U.S. retailers' same-store sales fell 0.6% last week, the third straight week-to-week decline, raising concern that stores will miss sales forecasts this holiday season, according to data released Tuesday. Bank of Tokyo economist Michael Niemira cut his estimate for November-December same-store sales to a gain of 2% to 4%, from a 4% rise. Winter storms in the Midwest and South-Central U.S. damped demand, he said. Shopper traffic at malls fell 9.6% in the seven days ended Dec.

Some national retailers were accused Friday of violating a 1997 state law that bans the sale of gift certificates or gift cards with expiration dates. A Santa Ana attorney filed a lawsuit in Orange County Superior Court on behalf of eight people who say they purchased or received certificates with expiration dates. "After [the expiration date], most people throw away the gift certificates without understanding the certificates are good indefinitely under California law," attorney Neil B.