J.C. Penney posts small Q2 loss, raises profit outlook

Plano, Texas J.C. Penney Co. posted a smaller-than-expected net loss in the second quarter on the results of cost-cutting moves. The retailer also boosted its annual profit outlook, but said it expects sluggish sales for the rest of the year after second-quarter revenue fell 7.9%.

J.C. Penney said it lost $1 million in the quarter ended Aug. 1. That compares with a profit of $117 million in the year-ago period.

Second-quarter results were depressed by a charge related to its pension plan of $106 million, compared with the year-ago period.

Revenue was $3.94 billion, down almost 8% from $4.28 billion in the year-ago period.

Same-store sales fell 9.5% for the period. The best-performing categories were shoes and women's apparel, while the weakest areas included children's apparel.

Myron E. Ullman, III, J.C. Penney's chairman and CEO, called the consumer climate "very difficult" but said in a statement that the company's strong financial position has let it invest in several initiatives, including opening its first Manhattan location last month (see related story here) and expanding its Sephora beauty shops in the stores.

For the third quarter, J.C. Penney expects same-store sales to decline anywhere between 5% to 7% and total sales to drop between 3% and 5 %. For the full year, the company said that same-store sales should fall anywhere from 7 % to 7.5%.

Based on better-than-expected results for the second quarter, the company raised its annual profit outlook.

For complete results, go to finance.yahoo.com/news/JCPenney-Reports-Second-bw-4021685707.html?x=0&.v=1.