Ullman was also quoted in the interview, published on Thursday, as saying the company may scale back its plans to open new stores, cutting 10 of the 50 stores it planned to open each year in 2008 and 2009.

“The precipitous drop in sentiment in the fall is what we feel we need to deal with going forward. We're assuming no improvement in the trend in 2008,” he said in the interview.

A slowdown in the U.S. housing market, as well as high energy prices and turbulence in the credit market, have hit Penney's predominately middle-income shoppers.

Companies referred to in story:

Stock %Chg Industry Mkt Cap J.C. Penney $37.57 +0.24% Department & Discount $8.3B Quote data as of: 03/31/2008 12:03 PM