J.C. Penney's nice Q2 surprises many
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.
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.
Dallas Morning News