Feb. 20 (Bloomberg) -- J.C. Penney Co., the third-largest U.S. department-store chain, forecast its first quarterly loss in almost five years as the recession trims U.S. consumer spending.

The loss will be 20 cents to 30 cents a share on a revenue decrease of as much as 13 percent, the Plano, Texas-based retailer said today in a statement. It last reported a loss in August 2004.

J.C. Penney has said it’s cutting inventory and halving the number of new stores it will open this year to contend with lower spending on clothing, jewelry, linens and rugs. Sales dropped 9.9 percent to $5.76 billion in the three months ended Jan. 31, the company said.

“This is not a time when people feel good about spending money,” said Sarah Henry, a retail analyst at MFC Global Investment in Berwyn, Pennsylvania. “There’s no question they’re competitive, but I think the environment is really overwhelming.” MFC has $1 billion in assets including J.C. Penney shares.

Sales at U.S. retailers fell for six straight months before rising 1 percent in January, an advance that may not be sustained after the number of Americans collecting jobless benefits reached a record 4.99 million two weeks ago. The gain in purchases reflected higher gasoline prices and more spending on clothing and food, the Commerce Department said Feb. 12.

‘Very Tentative’

“The customer’s very tentative,” Chief Executive Officer Myron Ullman said on a conference call today. “They’re buying what they need and they’re being very smart about how they spend their money.”

Women’s clothing, shoes and its Sephora in-store cosmetic boutiques fared the best, the company said. J.C. Penney is “taking share” in women’s apparel, according to Ullman. Sales at stores open at least a year declined 11 percent last quarter.

J.C. Penney, which runs 1,093 stores, rose 18 cents to $15.10 at 4:15 p.m. in New York Stock Exchange composite trading. The shares dropped 23 percent this year.

Fourth-quarter net income declined 51 percent to $211 million, or 95 cents a share, from a year earlier. Earnings from continuing operations totaled 94 cents.

Analysts projected 92 cents, the average of 14 estimates compiled by Bloomberg. They anticipated sales of $5.76 billion. This quarter, analysts predict a loss of 21 cents, on average.

Pension expenses in 2009 will total about 92 cents a share because of portfolio declines, the company said. The pension ran a surplus in 2008.

The company is in discussions with banks to renegotiate debt covenants and doesn’t need a revolving credit line, Chief Financial Officer Robert Cavanaugh said on the call. J.C. Penney generated $1.16 billion in operating cash in the year ended Jan. 31.

To contact the reporter on this story: Lauren Coleman-Lochner in New York at llochner@bloomberg.net.

Last Updated: February 20, 2009 16:29 EST