With big department and retailer stores like Macy’s Inc., Kohl’s Corp, and Nordstrom Inc declining sales comes J.C Penney Co’s huge shares jump that went beyond expected after a 2.2% increase in store sales.
A comparable 1.1% gain to $10.05 in the shares of the company was reported after last year’s loss of $117 million or 38 cents per share the same quarter to this year’s loss of $56 million or 18 cents per share at the same period.
The company’s revenue also went up to 1.5% to $2.92 billion with total quarter sales of $2.918 billion from a $2.875 billion total sales for the same quarter last year.
For the year, J.C. Penney’s shares rocketed to 49.3% to date for this year with the S&P Index SPX, +0.47% up by 6.9% for this quarter.
The department store chain’s competitors reported mixed statements with Macy’s announcing the closing of 100 stores while Nordstrom with reports of missed sales. While Sephora, Home, and Footwear and Handbags performed on the top with Ohio Valley and Pacific as the top performing locations in the country.
Plans and Initiatives to further expand earnings
J.C. Penney chairman and chief executive officer released a statement saying “We are pleased with the sequential improvement we achieved throughout the second quarter, and our solid performance across all key metrics is encouraging. We exceeded our profitability expectations, achieving an $85 million or 59 % increase in EBITDA to $229 million for the quarter. We are continuing to win market share and improve the bottom line of our business thanks to the commitment and hard work of our over 100,000 associates."
The Chairman also noted that they also have taken the steps to start the initiative to drive incremental growth in the back half of the year with the appliance rollouts, new Sephora locations, center core refreshes, an in-store .com fulfillment and a chain-wide rollout of online buying and same day store pick up. These are the company’s initiatives according to Ellison that they believe will bring them to achieve $1 billion this 2016 in EBITDA.
All in all, J.C. Penney got a total of $429 million at the end of the quarter. J.C. Penney closed this Thursday with an increase of 8.6% to $9.94 with an analyst price forecast of $11.02 and a trading range of $6.00 to $11.00 at a 52-week range after the earnings report was released.
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