UPDATE 2-JC Penney president resigns to be Foot Locker CEO

* Ken Hicks resigns as president, CMO of J.C. Penney

* Hicks to become Foot Locker CEO effective Aug 17 (Adds byline, analyst comment)

By Nicole Maestri

SAN FRANCISCO, June 25 (Reuters) - J.C. Penney Co Inc (JCP.N) said on Thursday that its president and chief merchandising officer, Ken Hicks, has resigned, and he will become the president and chief executive officer of athletic-shoe retailer Foot Locker Inc (FL.N).

Hicks, 56, will take on his new role on Aug. 17, when he will succeed Matthew Serra, who has been Foot Locker's chief executive officer since March of 2001. Serra, 64, will continue as Foot Locker's chairman until he retires on Jan. 30, 2010.

"It is rare that an opportunity to lead an international specialty retailer like Foot Locker Inc arises," Hicks said in a statement.

Hicks, the former president of Payless ShoeSource Inc, joined Penney in 2002, and held the position of president and chief merchandising officer since 2005.

He worked closely with the department store operator's CEO Myron "Mike" Ullman to run the retailer's business.

"When Ken Hicks was appointed president, supposedly a cheer went up in the executive suite because he was so well regarded," said Gilford Securities analyst Bernard Sosnick.