JCPenney beats department store doldrums

Home goods and Sephora helped JCPenney turn the page on the next chapter of its story of transformation by exceeding top-line growth expectations in the third quarter.

For its third quarter ended Oct. 31, the company reported net sales of $2.90 billion compared to $2.76 billion in the third quarter of 2014. Same store sales increased 6.4 % for the period. JCPenney cut its loss by 27% to $137 million, or 45 cents a share. Total sales increased 4.8 percent to $2.9 billion versus $2.76 billion last year.

"The continuation of our strong sales performance this quarter demonstrates ongoing progress towards achieving the company's long-term financial targets," said Marvin Ellison, chief executive officer. "We grew the top line, improved margin and intensified our expense discipline. As we look ahead to the fourth quarter, we are well positioned to compete effectively during the key holiday shopping period thanks to the hard work and dedication of all our associates."

JCpenney outshined department store retailers Macy's and Nordstrom, who both reported weak financial results this week. Ellison said JCPenney is looking to continue its momentum into the busy holiday shopping season.

"We have not noticed any headwinds in terms of our customer demographic going into the fourth quarter," Ellison said.

For the third quarter, JCPenney said all merchandise divisions had positive comp sales gains over last year. Men's, Home, Footwear, Handbags, and Sephora were among the company's top performing divisions.

Looking ahead to the full year, JCPenney reiterated its outlook for same store sales to increase 4% to 5%.

Ellison concluded: "While there is significant work to do to improve our company, the JCPenney team remains determined to regain our status as a world-class retailer."

JCPenney operates 1,020 stores and jcpenney.com.