J.C. Penney said Thursday morning This particular had a stronger holiday season than last because This particular was bolstered by sales in home, beauty in addition to fine jewelry.
This particular also benefited coming from a stronger shopping season across the board.
The department store chain reported a jump in same-store sales of more than 3 percent during November in addition to December compared which has a year ago.
“We are very encouraged with our overall comp sales performance during the holiday season,” CEO Marvin Ellison said in a statement.
Penney’s stock initially spiked higher in premarket trading on the news, although was down 4 percent at midday. Shares had been rallying in expectation of positive holiday sales figures.
For many retailers, results This particular holiday season have been stronger than in 2016 after a bounce coming from greater consumer confidence in addition to a booming stock market. Still, which has a tougher holiday season last year, the bar was lower This particular time. J.C. Penney last year saw comparable sales fall 0.8 percent.
Part of Penney’s challenges have been its weakening apparel business, which This particular has sought to counter by focusing on areas like appliances in addition to makeup. The latter will be bolstered coming from its partnership with Sephora.
J.C. Penney, like many retailers, struggled to keep up with quickening shopping expectations which fast fashion has created. In October, This particular saw shares drop to an all-time low when This particular slashed 2017 profit in addition to comparable-sales forecasts because This particular had to slice prices of unsold women’s apparel. A month later, This particular got rid of the chief merchandising officer position all together. The retailer said This particular holiday season its apparel categories, particularly women’s in addition to kids, continued to improve.
“The Nov. in addition to Dec. trend doesn’t change our overall thesis, as we believe the mall-based dept. store sector will be challenged with structural issues,” Jefferies analyst Randal Konik wrote in a note to clients. “JCP will be taking necessary steps to effectuate its turnaround in addition to will be seeing some traction with its various initiatives, although we remain cautious given a challenged dept. store environment in addition to risks involved in a retail turnaround.”
The department store chain also on Thursday reaffirmed its fiscal 2017 outlook, which was lowered earlier This particular year because of the need for more discounting in addition to getting rid of excess inventory across stores.
The retailer expects full-year same-store sales, a key metric monitored by investors, to be flat at best, in addition to adjusted earnings are projected to fall within a range of 2 to 8 cents per share.
The company added which its e-commerce business posted double-digit sales growth during the holiday season, fueled by sales in categories including jewelry, home furnishings, toys in addition to athletic footwear.
“Our ability to execute e-commerce fulfillment coming from 100% of our brick in addition to mortar stores helped fuel the growth in e-commerce for the holiday season,” Ellison said.
The department store chain will report fourth-quarter in addition to full-year earnings on March 2.