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.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.