JC Penney Is Going Bonkers

JC Penney shares were up more than 24% in after-hours trading after reporting higher than expected Q1 sales growth.

Same-store sales were also strong, rising 6.2% compared with forecasts for 4.2%.

Net sales were also topped $US2.8 billion compared with expectations for $US2.7 billion.

Gross margin for the quarter came in at 33.1%, in line with expectations.

Earnings loss per share beat by $US0.09 at $US1.16. The firm announced it had received a new, larger credit line.

After hemorrhaging sales, along with a CEO, over the past couple of years, Penney seems to have bottomed out. Shares have declined 74% since trading around $US25 in 2012, but are up 40% over the past three months. They now trade at about $US9.

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