J.C. Penney Co. reported a profit for the quarter ended July 31 of $14
million, or 6 cents a share, compared with a prior-year loss of $1
million, which included a pension expense of $83 million.
The company
the prior week said it expected to report a profit at the lower end of its
prior estimate of 5 cents to 8 cents. Results from the most recent
period include a charge of 5 cents a share from bond premiums related to
a debt tender offer completed in May.
Gross margin rose to 39.4% from 38.5% on improved sales and cost controls.
J.C. Penney's sales edged down 0.1% to $3.94
billion, as same-store sales rose 0.9%. That compares with prior-year
declines of 7.9% and 9.5%, respectively. Sales were driven by men's
apparel and women's accessories. Internet sales rose 4%.
Penney cut its earnings target for the year to the range of $1.40 to $1.50 a share from $1.64, below analyst estimates.
J.C. Penney forecast third-quarter earnings of 16 cents to 20 cents on
revenue growth of 1% to 2% and a same-store sales increase of 2% to 3%.
Analysts polled by Thomson Reuters projected a 24-cent profit and 1.9%
revenue increase to $4.26 billion.
