JC Penney most optimistic about 4th quarter

By Aarthi Sivaraman

NEW YORK (Reuters) - J.C. Penney Co Inc (JCP.N) is more optimistic about its fourth quarter than the rest of its fiscal year, hoping new styles and affordable prices will help it win more sales than it did in the dismal 2008 holiday season.

Speaking at the Reuters Global Retail Summit in New York on Wednesday, Penney Chief Executive Myron "Mike" Ullman said the company's best chances of doing well would be in the final quarter, which includes the December sales season.

That was the toughest period for most retailers last year, when the holiday season was one of the worst in nearly 40 years.

But this year, the fourth quarter could be Penney's biggest opportunity, Ullman said. "That's the biggest-volume quarter and that's the quarter (when) we had the most difficulty last year," he said.

For the 2009 holidays, Ullman predicted demand for colorful, new fashions that are affordable for cash-strapped consumers, with men's sweaters, for instance, being a top gift choice.

The focus on new is in contrast to luxury retailers like Saks Inc (SKS.N) and Burberry (BRBY.L). Executives from those chains said at the Reuters Global Luxury Summit earlier this week that their shoppers were still looking for classic brands, with Saks noting an emphasis on price.

Saks, for instance, will sell a $750 Prada handbag during the holidays, while a prior style sold for $1,000.

Penney's St. John's Bay handbags, on the other hand, are $20 to $60.