J.C. Penney Stock Surges as Turnaround Plan Shows Results
J. C. Penney surprised Wall Street on Friday, but not in the way investors had come to expect: The beleaguered department store chain reported an increase in a key measure of sales
that was greater than anticipated, causing its stock to surge.
The retailer said comparable sales — those at stores open at least a year — had risen 1.7 percent in the third quarter compared
with the same period a year earlier, more than double analysts’ expectations and the company’s own forecast last month.
The company reported a net loss of $128 million, or 41 cents a share, nearly doubling from $67 million, or 22 cents a share, a year earlier.
Kohl’s reported an uptick in same-store sales, but its quarterly profits missed expectations, a result
it attributed to the impact of Hurricanes Harvey and Irma hitting during the back-to-school season.
The upswing was J. C. Penney’s first in that critical metric in a year, an indication
that the chain’s strategy of purging excess inventory and closing underperforming stores was paying off.
The J. C. Penney results were a departure from recent earnings reports from retailers
that have raised concerns heading into the holiday shopping season.
