One of the nation's largest apparel and home furnishing retailers, JCPenny is undergoing a resurgence to become America's preferred retail destination for unmatched style, quality and value. The narrower-than-expected loss for its fiscal fourth quarter saw its shares rise 2.8 percent to 6.13 in after hours trading after rising 5.7 percent during the regular session.
Thanks to a one-time tax benefit and the sale of property, the retailer reported
"Let me start off by saying that the turnaround of JCPenney is beginning to take hold. We're making significant strides toward restoring JCPenney to its rightful place in retail," CEO
Despite those encouraging words from Ullman, news coming from the
During the fourth quarter, JCPenney reported net sales of
Comparable store sales rose 2.0 % for the quarter, that included the holiday season, which represented a sequential improvement when compared to the third quarter of fiscal 2013.
It was the retain chain's first gain in nearly two years.
Holiday sales during the November and December period rose 3.1%, while sales on the company's website increased 26.3% for the quarter, excluding the 53 rd week last year.
Penney said it expects comparable sales to be up by a "mid-single digit" percentage for this fiscal year..
Ullman, who returned to the helm in April after sales went into free fall due to a failed attempt to go up-market in 2012, said the company's turnaround "remains on course."
Penney's gross margin, a gauge of merchandise profit, rose 4.6 percentage point to 28.4 percent of sales, because of higher than anticipated markdowns on clearance merchandise.
The Company incurred
In the fourth quarter, the Company recognized a tax benefit of
But the company said it expects gross margin, which historically has been around 39 percent of sales, will improve "significantly" this year.
The retailer is trying to stanch enormous losses and win back shoppers after a 25 percent drop in sales in fiscal 2012. Those sales decline continued in the first three quarters of its last fiscal year.
Penney said it expects to have
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