JCPenny (NYSE: JCP) on Friday reported a smaller-than-expected loss, but the recovering department store’s revenues missed analysts’ expectations.
As stated by CNBC, JCPenney’s shares were up 1.8 percent in premarket trading, after initially turning down following the earnings announcement.
JCPenney posted a loss of 5 cents a share during the fiscal second quarter, on revenue of $2.92 billion. Analysts had expected a loss of 15 cents a share on $2.93 billion in revenue, according to a consensus estimate from Thomson Reuters.
The chain lost 41 cents a share in the prior-year period, and generated revenue of $2.88 billion.
JCPenney’s comparable sales also fell just short of Wall Street predictions, rising 2.2 percent. A Thomson Reuters estimate expected the company to post a 2.4 percent gain. That metric turned slightly negative in the first quarter, following nine quarters of flat or positive results.
The company reiterated its 2016 guidance, which calls for a comparable sales gain of 3 percent to 4 percent and EBITDA of $1 billion. For the fiscal second quarter, its EBITDA was $229 million.
“We are pleased with the sequential improvement we achieved throughout the second quarter, and our solid performance across all key metrics is encouraging,” CEO Marvin Ellison said.
“We are excited about the initiatives we have in place to drive incremental growth in the back half of the year.”