JC Penney (JCP) showed critics that they may be down but not out, as JCP stock boomed 23% after the company saw better than expected earnings.
JC Penney reported a loss of 69 cents a share, which came in better than the median analyst forecast for a loss of 81 cents. JC Penney’s same-store sales rose 2%.
Sales were $3.78 billion, below analyst forecasts for $3.84 billion.
But the company has some excuses to lean on this time.
All U.S. retailers and sales have been impacted by the harsh weather that forced the closing of numerous stores throughout the Central and Northern states.
Beginning in the middle of February, retailers began seeing stronger sales momentum.
There is also the revamped vision that JC Penney has been pushing as its JCP stock has fallen. (via Forbes)
The cleanup of unwanted merchandise is over. Many of the brands that had been discontinued in in the final quarter had been marked down in order to move them out of the stores. Names like Joe Fresh Kids, JCP Everyday, Bodum, Conran, Joe by Joseph Abboud, JCP home and others have left the shelves. while Ambirelle, St. John’s Bay, a.n.a, Royal Velvet and others have returned to lure back customers. Customer traffic has visibly improved …
Still, the retailer knows it has a challenging road ahead, even with the good news. J.C.Penney sales for FY 2013 totaled $11.9 billion — which is 8.7% lower than the previous year.
As Forbes points out, “net loss for the year was a whopping $1.4 Billion, an almost 41% greater loss than the previous year.”
JCP stock is down 20% year to date.