J. C. Penney Co., the nation’s third-largest...

J. C. Penney Co., the nation’s third-largest retailer, said its fourth-quarter profits increased 3.8% over a year ago but its annual earnings declined 8.6%. R. H. Macy & Co., the 10th-largest retailer, reported that its profits for the fiscal second quarter gained 5.1%. Penney’s retail divisions had a 24% increase in net income for the three months before the impact of the last-in-first-out method of inventory valuation, the company said. Macy said its net income for the second quarter ended Feb. 1 was $106.3 million, compared to $101.1 million a year earlier.