J.C. Penney Company, Inc. (NYSE: JCP) on Friday announced fiscal third quarter revenue and earnings that beat analysts’ estimate, sending the stock up more than 15 percent.
The retailer said comparable sales rose 1.7 percent in the quarter ended October 28, 2017. Analysts polled by Thomson Reuters had expected comparable sales to increase 0.7 percent.
Sales and earnings are also not as bad as analysts predicted. Net sales fell 1.7 percent to $2.81 billion in the fiscal third quarter, beating analysts’ estimates of $2.77 billion.
Excluding certain items, the company lost 33 cents per share, less than 40 to 45 cents lost it had previously estimated. Analyst had projected a 43 cents loss.
Marvin R. Ellison, chairman and chief executive officer said, "We are encouraged that we delivered positive sales comps for the third quarter. Our growth strategies and new apparel initiatives led to sequential comp sales improvement in nearly all merchandise categories in the third quarter, giving us confidence that our overall strategy and transformation is beginning to take hold. While we have more work to do, we remain focused on two critical factors - to operate the business for growth and deliver positive earnings. We're committed to making the right strategic decisions to ensure we are providing our customers more reasons to shop and experience JCPenney."