Nice Quarter at J.C. Penney

Now free of its ailing Eckerd drugstore chain, J.C. Penney(JCP Quote) Tuesday swung to a second-quarter profit, matching analysts' forecasts. It also cited strong back-to-school department store sales and improved gross margins.

The mainly mall-based department store chain was upbeat about the current quarter, guiding earnings within range of the Wall Street consensus.

Net income was $1 million, which because of preferred dividends translated into a loss of 2 cents a share in the second quarter. The company had break-even results, or a loss of 2 cents a share, a year ago. Results in both quarters included losses associated with the Eckerd division. ...