REFILE-UPDATE 2-J.C. Penney third-quarter profit falls 53 pct

(Refiled to remove extraneous word in first paragraph)

* Q3 profit 55 cents a share, down 52.9 pct

* Q3 sales $4.3 billion, down 8.7 pct

* Sees worsening results rest of the year

* Shares indicated lower (Recasts first paragraph, adds inventory, details)

NEW YORK, Nov 14 (Reuters) - Retailer J.C. Penney Inc (JCP.N) on Friday said quarterly profit fell nearly 53 percent and warned of worsening results for the rest of the year, just weeks before the crucial holiday shopping season begins.

The mid-tier department store operator forecast fourth-quarter earnings of 90 cents to $1.05, much lower than analyst expectations of $1.33 per share, according to Reuters Estimates.

The Plano, Texas-based company said it expects total fourth-quarter sales to fall 7 percent to 9 percent and sales at stores open a least a year, a key retail metric, to drop 9 percent to 11 percent.

Penney said it expects the rough economic conditions to continue well into 2009.

Sales and profits have suffered in recent months and took a turn for the worse in October as shoppers focused on essential purchases because of falling housing values, tight credit and worries about job security.

Penney's holiday warning is similar to those of Kohl's Corp (KSS.N) and Nordstrom Inc (JWN.N). Both department stores reported sharply lower quarterly profits on Thursday and cut their forecasts for the rest of the year.

QUARTERLY PROFIT FALLS BY MORE THAN HALF

Penney's net income fell to $124 million, or 55 cents per share, for its fiscal third quarter, ended Nov. 1, from $261 million, or $1.17 cents per share, a year earlier.

Analysts had expected a profit of 54 cents on revenue of $4.34 billion.

Sales fell 8.7 percent to $4.32 billion, and sales at stores open at least a year, or same-store sales, fell 10.1 percent in the quarter.

Last week, Penney said October sales at stores open at least a year fell 13 percent.