<PAGE>

                                                                      Exhibit 11

                           J. C. PENNEY COMPANY, INC.
                         and Consolidated Subsidiaries

                   COMPUTATION OF NET INCOME PER COMMON SHARE
               (Amounts in millions except per common share data)


<TABLE>
<CAPTION>

                                         52 Weeks Ended             52 Weeks Ended            53 Weeks Ended
                                        January 29, 2000           January 30, 1999          January 31, 1998
                                   -------------------------    ----------------------    ----------------------
                                   Shares            Income     Shares          Income    Shares          Income
                                   -------           -------    -------         ------    ------          ------
<S>                                <C>       <C>     <C>        <C>      <C>     <C>      <C>      <C>    <C>
Basic
-----

Net income                                             $336                      $594                      $566

Dividend on Series B ESOP
   convertible preferred stock
   (after-tax)                                          (36)                      (38)                      (40)
                                                       ----                      ----                      ----
Adjusted net income                                     300                       556                       526

Weighted average number of
   shares outstanding               259.4                        252.8                     247.4
                                    -----              ----      -----           ----      -----           ----
                                    259.4              $300      252.8           $556      247.4           $526
                                    =====              ====      =====           ====      =====           ====

Net income per common share                  $1.16                       $2.20                     $2.13
                                             =====                       =====                     ====


Diluted
-------

Net income                                             $336                      $594                      $566
Tax benefit differential on ESOP
   dividend assuming stock is
   fully converted                                                                                           (1)
                                                          -                         -
Assumed additional contribution
   to ESOP if preferred stock is
   fully converted                                        -                        (1)                       (3)
                                                       ----                      ----                      ----
Adjusted net income                                     336                       593                       562

Weighted average number of
   shares outstanding (basic)       259.4                        252.8                     247.4
Stock options and other               0.4                          1.8                       2.5
Convertible preferred stock          15.3                         16.6                      18.2
                                   ------              ----      -----           ----      -----           ----
                                    275.1              $336      271.2           $593      268.1           $562
                                   ======              ====      =====           ====      =====           ====

Net income per common share                  $1.16(1)                    $2.19                     $2.10
                                             =====                       =====                     =====
</TABLE>

(1)  Calculation excludes the effects of the potential conversion of outstanding
     preferred shares into common shares, and the related dividends, because
     their inclusion would have an anti-dilutive effect on EPS.