65.4 F
Fort Worth
Saturday, September 19, 2020
- Advertisements -
Banking J.C. Penney's 2Q narrows loss on sales gain, lower costs

J.C. Penney’s 2Q narrows loss on sales gain, lower costs

Other News

Petalo, not Charmin: Virus brings Mexican toilet paper to US

By JOSEPH PISANI AP Retail Writer NEW YORK (AP) — Toilet...

Mall owners close to buying JC Penney out of bankruptcy

By ANNE D'INNOCENZIO AP Retail WriterNEW YORK (AP) — Mall owners Simon Property Group and Brookfield Property Partners are close to a...

At Home launches collection with Fort Worth connection

At Home Group Inc. (NYSE: HOME), The Home Décor Superstore, has debuted an exclusive collection with interior...

Former Toys ‘R’ Us reopens as Havertys in Southlake

HAVERTYS (NYSE: HVT and HVT.A) will officially open its new store in Southlake Corners on Friday, August 21, 2020. The 32,300 square...

PLANO, Texas (AP) — J.C. Penney reported a narrower loss in its second quarter on stronger-than-expected sales as the department store chain continues to turn its business around.

Shares of the company rose in premarket trading.

The results, announced Friday, offer encouraging signs for the Plano-based retailer, which is trying to recover from a disastrous attempt to reinvent itself under former Apple executive Ron Johnson.

But it still faces big challenges ahead heading into the final months of the year amid an economy that is still tripping up the chain’s middle-income shoppers. Shoppers’ spending is also shifting away from department-store specialties such as clothing and more toward restaurants, autos and smartphones.

The figures were released a few weeks after Marvin Ellison, a former Home Depot executive, officially took over the reins as CEO from Myron Ullman, who became executive chairman of the board. Ullman came back to the helm in April 2013 after Johnson was pushed out. Ullman helped pick Ellison, and the two executives have been running the company together since November.

Under Ullman’s second tenure, Penney has been trying to stabilize the business by restoring frequent discounts and bringing back basic merchandise and popular store brands that Johnson eliminated. Now, Ellison is tasked to pump up sales growth by sprucing up some departments like jewelry and expanding its e-commerce business after falling behind rivals.

J.C. Penney lost $138 million, or 45 cents per share, for the quarter ended Aug. 1. That compares with a loss of $172 million, or 56 cents per share, a year earlier.

Losses, adjusted for one-time gains and costs, were 41 cents per share.

Revenue rose 2.7 percent to $2.88 billion.

The average estimate of 10 analysts surveyed by Zacks Investment Research was for a loss of 50 cents per share.

Revenue also topping Street forecasts. Eight analysts surveyed by Zacks expected $2.86 billion.

Revenue at stores opened at least a year rose 4.1 percent, in line with analysts’ estimates.

Shares rose nearly 3 percent, or 21 cents, to $8.28 in premarket trading Friday. The stock has lost 81 percent of its value since February 2012, when enthusiasm over Johnson’s reinvention plan pushed up the stock to $43.

- Advertisements -
- Advertisements -

Latest News

August unemployment rate in Texas drops to 6.8%, lowest level since coronavirus shutdowns

By Mitchell Ferman, The Texas Tribune Sept. 18, 2020 "August unemployment rate in Texas...

August US home building slides 5.1% after months of gains

By MARTIN CRUTSINGER AP Economics Writer WASHINGTON (AP) — U.S. housing construction fell a surprising 5.1% in August after...

COVID-19 danger continues to drive joblessness in US

By PAUL WISEMAN AP Economics Writer WASHINGTON (AP) — The number of Americans applying for unemployment benefits fell last...

Liz Weston: Some remote workers may be in for tax surprise

By LIZ WESTON of NerdWallet . If the pandemic caused you to...

Business owners tap into savings to withstand pandemic

By JOYCE M. ROSENBERG AP Business Writer NEW YORK (AP) — When the coronavirus outbreak...