J.C. Penney Slashes Q2 Loss as Sales Gain
August 15, 2014,
PLANO, 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."
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.