J.C. Penney's nice Q2 surprises many

Dive Brief:

  • J.C. Penney surprised Wall Street and many skeptics with its report Thursday of a 6% Q2 sales increase, its third straight quarter of sales increases.

  • The Plano, TX-based retailer also said it had stemmed its losses significantly. Aside from a planned $250 million investment in capital improvement, the company expects $2.1 billion of liquidity by the end of the year.

  • In its report, the company says its outlook remains bright and that while continued rising sales will be harder to come by, it expects sales to increase 5% for the year.

Dive Insight:

While many retailers, like Macy’s and Wal-Mart, have lowered their expectations and reported sluggish sales, J.C. Penney’s report is a bright and hopeful one. That is especially startling for a retailer that many have been written off. Many of Penney’s improvements have actually been the dismantling of new programs and policies started by former CEO Ron Johnson -- essentially a return to its old ways. But that is apparently what Penney’s customers wanted.

Recommended Reading

Dallas Morning News: J.C. Penney surprises investors with sales gains, slashed losses


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Retail Trends Operations