J C Penney Posts Narrower Q2 Loss, Shares Surge

Shares of J C Penney Company Inc JCP gained more than 4 percent in pre-market trading after the company reported a narrower-than-expected adjusted loss for the second quarter. The Plano, Texas-based company posted a quarterly net loss of $138 million, or $0.45 per share, versus a year-ago loss of $172 million, or $0.56 per share, in the year-ago period. Excluding items, the company's adjusted loss came in at $0.41 per share. Its revenue increased to $2.88 billion from $2.80 billion. However, analysts were expecting a loss of $0.48 per share on revenue of $2.86 billion. The average estimate among 48 Estimize users was for a loss of $0.46 per share and revenue of $2.84 billion. Its same-store sales surged 4.1 percent for the quarter. J C Penney's gross margin expanded 100 basis points to 37.0 percent of sales. EBITDA rose by $25 million to $115 million in the latest quarter. Marvin Ellison, chief executive officer said, "We are pleased to report another quarter of improved performance thanks to the commitment and diligence of the JCPenney team. Although we have significant work to do as a company to regain our status as a world-class retailer, I am pleased with the resilience and the efforts of our associates. I also remain confident in our ability to achieve the long-term financial targets we have laid out." For 2015, the company now expects EBITDA of around $620 million, versus prior forecast of $600 million. It now projects SG&A expenses to drop $120 million, versus prior outlook of a $100 million decline. J C Penney projects comparable store sales to rise 4 percent to 5 percent. J C Penney shares rose 4.46 percent to $8.43 in pre-market trading.