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Department-store operator J.C. Penney Co. said Friday its third-quarter profit fell by more than half as consumers cut back on spending and took fewer trips to the mall amid the deteriorating economy.

The company also said mall traffic in general has been weak so far this month and issued fourth-quarter guidance well below analyst expectations.

J.C. Penney shares fell $1.60, or 8.3 percent, to $17.68 during midday trading, nearing its 52-week low of $16.39. In February, the stock had traded at a year-high of $51.42.

Department stores, including mid-tier J.C. Penney, have been among the retailers hardest hit by consumers' cutbacks and bargain hunting amid an economic slowdown, shaky job market and prolonged housing slump. On Friday the Commerce Department reported that retail sales plunged by the largest amount on record in October as consumers cut back on spending in the wake of the financial crisis.

The company said profit for the three months ended Nov. 1 fell 52 percent to $124 million, or 56 cents per share, from $261 million, or $1.17 per share, last year. Revenue slid 9 percent to $4.32 billion from $4.73 billion last year.

Analysts surveyed by Thomson Reuters expected a profit of 53 cents per share on slightly higher revenue of $4.39 billion.

"As sales have been impacted by lower consumer spending and declining mall traffic, we have been effective in reducing selling, general and administrative expenses without compromising our customer experience and in managing our inventories to appropriate levels," Ullman said in a statement.

Sales in stores open at least one year fell 10.1 percent. Women's and children's apparel and family shoes were the best performers while jewelry and home divisions continued to be weak. Sales held up best in the Northeast and Central regions, but were offset by weak results in the Southeast and Southwest, where the housing slump has been the most pronounced.

Looking ahead, Ullman said he expects the weak environment will persist "well into 2009" and is planning business accordingly.

Heading into the holiday season, Plano, Texas-based J.C. Penney plans to woo customers into its stores by ramping up its gift assortment and customer service and launching a marketing campaign aimed at conveying both the style and value of its products.

"Our marketing shows our customers we understand their financial pressures," said Chairman and Chief Executive Myron E. Ullman III said in a conference call with investors.

The company is also "aggressively" targeting customers of the 177 stores that Mervyns has closed or is closing under its bankruptcy-protection plan in an effort to convert those shoppers to J.C. Penney.

But the company expects fourth-quarter earnings will range between 90 cents and $1.05 per share, far below the $1.32 per share analysts are predicting, on a 7 percent to 9 percent sales decline. J.C. Penney expects same-store sales to fall 9 percent to 11 percent in the fourth quarter.

The company also said it will record a hefty charge in fiscal 2009 related to an accounting method it uses for its pension plan, but will not know the actual value of the charge until the end of the fiscal year.

Strong box office revenue for film 'Iron Man' helped boost Marvel Entertainment Inc.'s third-quarter earnings by 39 percent, and the licensing and comic-book publishing company on Tuesday also raised its 2008 forecast.

But 2009 will prove a different picture.

Marvel expects only "modest" performance next year, partly due to 'Iron Man' revenue shifting to 2008 and no 2009 summer feature films slated for release. It also cited less expected Spider-Man-related revenue and the slowing economy's effect on the retailers who sell its character-driven merchandise.

In morning trading, shares fell $1.66, or 5.4 percent, to $29.22.

For the three months ended Sept. 30, New York-based Marvel earned $50.6 million, or 64 cents per share, compared with $36.3 million, or 45 cents per share, a year ago. Revenue grew 48 percent to $182.5 million, including about $60 million in earlier-than-expected "Iron Man" revenue, from $123.6 million last year.

The results easily beat the average estimates of analysts polled by Thomson Reuters, who had forecast profit of 45 cents per share on revenue of $146.1 million.

Paramount's "Iron Man", starring Robert Downey Jr. as the title comic-book character, grossed $318.3 million in the U.S., according to Media By Numbers LLC in Encino, Calif. It is the among the 25 top-grossing films of all time. Paramount Pictures is owned by Sumner Redstone's media conglomerate Viacom Inc.

Film production sales totaled $90.2 million in the third quarter, versus none in the prior year. Marvel credited the box office take of "Iron Man," fees for serving as a producer for the film and for "The Incredible Hulk," as well as foreign DVD pre-sales for 'Iron Man,' which was released on DVD on Sept. 30.

In the quarter, licensing fees fell 29 percent to $58.1 million in part due to weakness in Spider-Man film merchandising joint venture. The last Spider-Man film was released in May 2007. Publishing sales slipped 3 percent to $34 million, as lower trade paperback sales and custom publishing weren't totally offset by higher sales of traditional comics.

Based on the stronger-than-expected quarterly results, Marvel raised its 2008 outlook to between $2.45 to $2.65 per share on revenue of $640 million to $670 million, from prior estimates of $1.55 to $1.75 per share on revenue of $450 million to $480 million. The new guidance is well above analysts' average forecast for profit of $1.93 per share and revenue of $527.9 million.

But for 2009, Marvel forecast earnings per share of $1 to $1.35 on revenue of $415 million to $460 million. Analysts had projected earnings of $1.94 per share on revenue of $617.8 million.

"While Marvel's core licensing business continues to grow, global visibility and consumer demand created by tent-pole feature films based on our characters, as well as the timing of related revenues, creates variability in our year over year operating income," Chairman Morton Handel said in a statement.

Marvel's next feature films, 'Iron Man 2' and 'Thor' are slated for release in summer 2010, with 'The First Avenger: Captain America' and 'The Avengers' to be released the following year.