J.C. Penney Company Inc. (JCP) - Get Report posted a narrower-than-expected third quarter loss Friday, and boosted its full-year profit guidance, as the struggling retailer said it has made "significant progress" in its year-long turnaround.
J.C. Penney said its adjusted loss for the three months ending on November 2 was pegged at 29 cents per share, a 37.5% improvement from last year and well inside the Street consensus forecast of a 54 cents per share loss. Group revenues, J.C. Penney said, fell 5.6% to $2.5 billion, again topping analysts' forecasts of a $2.43 billion tally. Same-store sales, J.C. Penney said, fell 6.6% on an adjusted basis.
Looking into the final months of its financial year, the retailer said its sees adjusted earnings in the region of $475 million, up from its prior forecast of between $440 million and $475 million, with adjusted same-store sales falling between 5% and 6%.
"The past quarter was an exciting and energizing time at JCPenney as we made significant progress on our efforts to return JCPenney to sustainable, profitable growth," said CEO Jill Soltau. "We are beginning to see results - both in our numbers and how we operate as a business - from the early implementation of our Plan for Renewal, which is focused on driving traffic, offering compelling merchandise, providing an engaging experience, fueling growth, and building a results-minded culture."
"Going forward, I am confident that delivering our strategy, coupled with our ongoing discipline and commitment to improving the foundational elements of our business, will return JCPenney to its rightful place in the retail industry," she added.
J.C. Penney shares were marked 11.2% higher at the start of trading Friday following the earnings release to change hands at $1.22 each, the highest since late April and a move that would give the stock a year-to-date gain of 17.3%.