Department store chain J.C. Penney Co Inc (JCP.N) reported third-quarter same-store sales that were twice what it had estimated, sending its shares up 9 percent in premarket trading on Friday.
(Reuters) – Department store chain J.C. Penney Co Inc (JCP.N) reported third-quarter same-store sales that were twice what it had estimated, sending its shares up 9 percent in premarket trading on Friday.
The retailer said comparable sales rose 1.7 percent, better than the 0.6-0.8 percent rise it had forecast last month.
Analysts on average had expected comparable sales to increase 0.7 percent, according to Thomson Reuters I/B/E/S.
J.C. Penney last month also slashed its full-year forecast as it sold stagnant apparel inventory at heavy discounts amid an overhaul of its women&rsquo-s section.
Rivals such as Macy&rsquo-s (M.N) and Nordstrom (JWN.N) reported a decline in quarterly comparable sales on Thursday, as store closures due to hurricanes added to their ongoing troubles of weak mall traffic and losing customers to online shopping.
J.C. Penney&rsquo-s net loss widened to $128 million, or 41 cents per share, in the quarter ended Oct. 28, from $67 million, or 22 cents per share, a year earlier, partly due to heavy discounting to clear slow-moving inventory.
Excluding items, the company reported a loss of 33 cents per share, smaller than the 40-45 cents loss it had estimated. Analysts had expected a 43 cent loss.
Net sales fell about 2 percent to $2.81 billion, but beat the average analyst estimate of $2.77 billion.
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