Analysts from Morgan Stanley recently completed discussions with J.C. Penney (JCP) - Get J. C. Penney Company, Inc. Report CEO Marvin Ellison regarding the struggling retailer's ongoing turnaround efforts, and his outlook for its third-quarter earnings results.

Ellison, whose company's stock is lower over 57% year-to-date, was confident in stating that this year's holiday season is shaping up favorably for the retailer while noting beauty, home refresh, omnichannel, pricing strategy, and women's apparel are instrumental in generating positive same-store-sales.

Ellison also told the analysts that investors should primarily focus on the company's appliance sales, Sephora jewelry and In Style sales, and sales improvement in the performance of women's clothing.

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A part of the stock's fall in 2017 might be the fact that the year was perhaps the most promotional in the retailer's history, according to Ellison. This is the result of increasing competition in the apparel space. J.C. Penney also expects impacts from both Hurricane Harvey and Irma to present negative consequences for the company as well.

Shares of J.C. Penney were sinking nearly 7% in afternoon trading on Monday.

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