Penney reported sales grew 6.3% to $2.8 billion for the quarter ended May 3, up from $2.6 billion last year. But net income took a hit with a loss of $352 million. Still that beat analyst estimates. Penney lost $1.15 per share, better than the $1.26 analysts expected.
Sales at stores open at least a year grew 6.2%, a significant leap from last year's same-store sales loss of 16.6% in the first quarter of 2013.
"It is clear that our efforts to re-merchandise many areas of the store and revamp our messaging to the customer are taking hold," CEO Mike Ullman said in a company statement. "We expect to carry this momentum into the second quarter as we continue to position the company for long-term profitable growth."
Penney shares are up nearly 25% in after-hours trading to $10.37.
Penney appears to be making a comeback a little more than a year after CEO Ron Johnson stepped down. Johnson's failed attempt at reviving the retail chain by getting rid of sales and coupons in favor of everyday low prices made for an abysmal year of financial results in 2012.
Johnson left Penney last April and was replaced by former Penney CEO Mike Ullman.
"I think the consumer saw the old school JC Penney back in action, with promotions consistently in the range of 30% to 45%," says Brian Sozzi, CEO of Belus Capital Advisors.
No comments:
Post a Comment