JC Penney Shares Surge On Surprisingly Strong Sales

JC Penney reported an increase in third-quarter same-store sales that was twice what analysts expected, sending its shares up 15 percent in premarket trading on Friday.

The retailer said comparable sales rose 1.7 percent, compared with the 0.6 percent to 0.8 percent it had forecast last month.

Analysts on average had expected comparable sales to increase 0.7 percent, according to Thomson Reuters I/B/E/S.

JC Penney last month also slashed its full-year forecast as it sold stagnant apparel inventory at heavy discounts amid an overhaul of its women’s section.

“We took aggressive actions to clear slow-moving inventory, primarily allowing for an improved apparel assortment heading into the holiday season,” Chief Executive Marvin Ellison said in an earnings release.

US department stores have worked hard this year to rein in inventory to match declining foot traffic and boost weak margins as shoppers increasingly turn to off-price and online retailers.

Rivals Macy’s, Kohl’s and Nordstrom reported results on Thursday and said they were entering the most important shopping season of the year in tight inventory positions.

J.C. Penney’s net loss widened to $128 million, or 41 cents per share, in the quarter, ended Oct. 28, from $67 million, or 22 cents per share, a year earlier, partly because of heavy discounting to clear slow-moving inventory.

Excluding items, the company lost 33 cents per share, less than the 40 to 45-cent loss it had estimated. Analysts expected a 43-cent loss.

Net sales fell about 2 percent to $2.81 billion but beat the average analyst estimate of $2.77 billion.

Source : https://nypost.com/2017/11/10/jc-penney-shares-surge-on-surprisingly-strong-sales/

JC Penney shares surge on surprisingly strong sales
Why Are Retail Stock Prices Low When Retail Sales Are High?
KB Home shares surge on spike in home orders
Shake Shack shares soar, profit and sales surprisingly strong
Best Buy shares surge 15 percent on strong sales, cost cuts
Fitbit Shares: The Reaction After Apple Watch Sales Deterioration
UPDATE 3-Bilfinger shares surge on high payout, turnaround hopes
Black Friday deals lure U.S. shoppers, biggest sales gains online
Macy's shares jump at first sign of sales turnaround
Bilfinger shares surge on high payout, turnaround hopes