J.C. Penney Slashes Q2 Loss as Sales Gain

J.C. PenneyPLANO, Texas-With net sales increasing for the second quarter in a row, J.C. Penney reported a net loss of $172 million in its fiscal second quarter, compared to a net loss of $586 million in the second quarter of last year.

Net sales gained 5.1 percent to $2.8 billion in the quarter, which ended on Aug. 2. This included a same-store sales increase of 6 percent, marking the third quarter in a row that same-store sales trended upward. Home was one of the leaders in the department-store retailer's sales charge in the quarter, along with women's and men's apparel and accessories, and fine jewelry.

Myron Ullman III, J.C. Penney's CEO, 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."

Gross margin did indeed take a leap in the quarter, picking up 646 basis points to finish at 36 percent. Selling, general and administrative expenses were cut by 6 percent in dollars and 409 basis points as a percentage of sales, to 34.4 percent.

Based on these results, J.C. Penney said it expected same-store sales to increase by the mid-single digits in both the third quarter and for the fiscal year as a whole. "With our unique assortment of powerful private brands, key national brands and exclusive attractions--all at prices customers can afford--we expect to continue driving profitable sales this back-to-school season," Ullman said.

HFN Staff | News & Commentary

HFN provides detailed information on the key home classifications: Housewares, Tabletop, Floor Covering & Rugs, Furniture, Home Textiles, Lighting, Home Decor, Mattresses & Bedding, Gifts, Major Appliances and Consumer Electronics as well as Business, Finance and Retail.


  • Von Tobel Cites Brass Textures Among Top Trends

    Camera Icon   More Videos

Subscribe to
HFN Omnichannel
Receive the news you need to know about the trends in the industry delivered right to your inbox.

Current Issue

  • HFN cover for September 2017


    September 2017


    2017 State of the Industry Report
    Cautious Optimism, Mixed Results

    Many expected 2016 would be a banner year, but the political and economic climate softened consumer confidence. It was also a year consumers spent more lavishly on home remodeling rather than decorating.


    •  TJX Unveils First U.S. Homesense Store - In a time when retailers are reducing store counts, TJX continues to get physical.
    •   Ikea’s Fluid Spaces - The retailer’s new intros reflect multifunctional rooms.
    •  N.Y. Home Fashions Market Preview - Textile textures get soft and cozy, colors warmer.