JCPenney same store sale witness 4.1 percent growth

JCPenney reported net sales of 2.88 billion dollars compared to 2.80 billion dollars in the second quarter of 2014. Same store sales increased 4.1 percent for the period.

Commenting on the results, Marvin Ellison, Chief Executive Officer said, “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 the quarter, men's, home, Sephora and fine jewellery were the company's top performing merchandise divisions. In particular, Sephora continued its strong performance this quarter with a double digit increase in comparable store sales. Geographically, all regions experienced sales growth when compared to the same period last year with the best performance in the western and central regions of the country.

Gross margin improved 100 basis points to 37 percent of sales, driven by improvements in clearance and promotional selling margins. Operating income for the quarter improved 46 percent over last year to a loss of 38 million dollars. EBITDA improved by 25 million dollars to 115 million dollars. On an adjusted basis, EBITDA improved by 95 million dollars to 134 million dollars. In the second quarter, the company showed a 20 percent improvement in net income over the prior year to a loss of 138 million dollars or 0.45 dollar per share.

For the full-year comparable store sales are expected to increase 4 percent to 5 percent and gross margin is expected to improve 100 to 150 basis points. EBITDA would be approximately 620 million dollars compared to the previous expectation of 600 million dollars.