JC Penney shares are up more than 10% after reporting earnings that beat expectations.
JC Penney just reported a second quarter loss per share of $US0.56, less than the $US0.90 per share loss expected by analysts.
Same-store sales at the retailer rose 6%, more than the 5.8% that was expected.
Gross margin in the second quarter was 36%, up from 29.6% in the same quarter last year. Inventory was also down 9.7% compared to last year.
The company also reported free cash flow was $US76 million, a $US1.2 billion improve from last year. Revenue in the second quarter also beat expectations, coming in at $US2.8 billion, better than the $US2.78 billion that was expected.
In the third quarter, the company expects same-store sales to increase by mid-single digits, and Penney also sees this increase holding for the fiscal-year 2014.
JC Penney CEO Mike Ullman said, “Our turnaround initiatives continue to produce improved financial results. In the second quarter, we gained additional market share while significantly increasing gross margin in a highly competitive promotional environment.”
The company’s same-store sales beat marks the third straight quarter of beats following nine quarters of declines, according to data from Bloomberg. And analysts at Deutsche Bank said ahead of the report that Penney is currently the, “furthest from what former CEO Ron Johnson had envisioned.”
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