Woodward and Lothrop reported flat sales and a 9 per cent decline in profits for the second quarter.

The Washington-areas largest locally-owned department store chain said its net income for the three months fell to $1.6 million (66 cents a share) from $1.76 million (73 cents) the previous year, on sales of $54.45 million up only $160,000.

For the first half of the year, Woodies' sales increased 2.6 per cent to $109.18 million, but profits cased 4.8 per cent, from $3.22 million a year ago to $3.06 million.

President Edwin Hoffman said the softness in sales that developed after a strong Christmas selling season continued into the second quarter, although the trend has turned upward in the past six weeks. He credited new fall merchandise with helping sales in general and the addition of new Metro routes with aiding Woodies' downtown store in particular.

Imperial 400 National, Inc., reported substantially lower profits for the first half of the year, due largely to change in application of tax credits.

On revenues of $6.25 million up $2,000 from the previous year, the Arlington-based motel chain reported profits of $129,386 (12 cents per share) compared to $271,332 (26 cents) in the first half of 1976.

A year ago, the companys earnings reflected a tax loss carry forward of $148.500 (14 cents a share). This year a tax benefit of $156,000 (15cents) was added directly to capital in excess of par, the company said.