Boston, MA 05/16/2014 (wallstreetpr) – J.C. Penney Company, Inc. (NYSE:JCP) braced the abnormal winter weather to report its first quarterly sales gain since 2011. That marked the major indication of the improving conditions in the department store.
While the retailer reported positive results for 1Q2014, its peers had little to show for the quarter. Wal-Mart Stores, Inc. (NYSE:WMT), for instance, saw its sales falling below projection in the quarter, the first time in about five years. The retailer blamed the trouble in 1Q to the harsh weather condition that made it difficult for customers to visit stores. Wal-Mart saw its 1Q sales fall 1.7 percent below expectation, but the company still managed to end the quarter on a positive note as revenue rose 0.8 percent to $114.96 billion. That figure missed the consensus estimate of $116.27 billion.
A different story
The story was different the other side at J.C. Penney Company, Inc. (NYSE:JCP). Despite the weather challenge, the retailer realized sales growth and its revenue jumped 6.2 percent to hit $2.8 billion. Analysts on the average estimated revenue of $2.71 billion for the quarter. In 1Q2013, sales sank about 16 percent as customers stayed away from the stores at the height of the ill-fated transformation.
The company will start comparing its turnaround results in 2Q2014 given that the turnaround leader Mike Ullman returned to the company in 2Q2013.
The latest quarter saw J.C. Penney Company, Inc. (NYSE:JCP) register an adjusted loss of $1.16 per share, better than a loss of $1.25 per share that analysts estimated for the quarter.
The company experienced losses of more than $2.5 billion in the past three years. The trouble in the company started when then CEO Ron Johnson attempted to attract young and wealthier customers at the expense of the other shoppers. The board ousted Mr. Johnson and welcomed back Mr. Ullman to undo the ill-fated transformation that left the company soaked in losses as sales diminished.
Going forward
J.C. Penney Company, Inc. (NYSE:JCP)’s positive 1Q gained support from re-merchandizing the store and remaking its message to the customers. The company also observed attractive promotions that attracted many customers to the store. The CEO Ullman expects the momentum to continue into 2Q2014.
Shares of the company jumped on the positive news. The shares are up 5.19 percent year-to-date.
