J.C. Penney (NYSE:JCP) said on Friday that it lost $147 million during the second quarter. In the same period last year, the company saw a profit of $14 million. Revenue dropped to $3.02 billion, down 23% from 2011.
The company posted an adjusted loss of 37 cents a share for the quarter, worse than the 26 cents a share loss that Wall Street had predicted, the Associated Press noted. Despite the bad news, shares of J.C. Penney rose about 7% in early Friday trading.
The company said sales at stores open at least 12 months plunged 21.7%. In the first quarter, same-store sales declined by 18.9% over last year.
J.C. Penney also said it was rescinding its previously issued earnings outlook.
Earlier this year, the company introduced a new pricing plan that banned the terms “sale” and “discount” from its advertising. In their place, new CEO Ron Johnson said the chain would concentrate on promoting “every day low prices.”
But the strategy has misfired with consumers who are drawn to department stores like J.C. Penney through promotional discounts. The company has since modified its pricing.
Earlier this week, rival Macy‘s (NYSE:M) posted higher second-quarter earnings that topped analysts’ estimates.