JC Penney Shares Rocket Higher As Q1 Loss Comes In Better Than Expected

Department store

released its fiscal first-quarter results after the closing bell on Thursday. Shares have surged a jaw-dropping 20 percent and are now over the $10 level. The company reported net sales of $2.80 billion for the quarter, up six percent compared to $2.64 billion in the first quarter of 2014. JCPenney saw an increase of 6.2 percent in same stores sales. Revenue in the quarter exceeded analysts' estimates of $2.71 billion. JCPenney posted a net loss of $352 million, or a loss of $1.16/share, compared to a loss of $348, or loss of $1.58/share in the same quarter last year. This exceeded analysts' estimates for the first quarter loss of $0.89/share. Looking ahead for the fiscal year of 2014, JCPenney anticipates comp store sales to increase in the mid-single digits, while gross margin is expected to improve significantly to 2013. CEO Myron E. Ullman III was very pleased with a second consecutive quarter of comparable store sales growth, as well as continued gross margin improvement. Ullman expects to carry this momentum into the second quarter aiming for the company's long-term profitable growth goal. JCPenney was last being traded at $9.97, up 19.12 percent.