J.C. Penney Shares Jump Despite Steep 2Q Loss

By Adam Samson Retail FOXBusiness

JCPenney, Dick's Sporting Goods Earnings

Diane Macedo reports that JCPenney and Dick's Sporting Goods missed estimates.

J.C. Penney (JCP) revealed a wider-than-expected quarterly loss, but an encouraging outlook helped send the struggling retailer's shares higher in choppy trading. 

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The company revealed an adjusted fiscal second-quarter loss of $2.16 a share, compared to estimates of a loss of $1.06 per share. Sales of $2.66 billion came in lighter than the $3.02 billion logged in the same three months in 2012, and also trailed estimates of $2.76 billion. 

Comparable-store sales, a key metric for retailers, plummeted 11.9%, which the company blamed on failed merchandising and promotional strategies. 

"There are no quick fixes to correct the errors of the past," said CEO Mike Ullman in a statement. "That said, we have identified the challenges, put solid plans in place to address them and have experienced and capable people in key roles to do so."

The Plano, Texas-based retailer hinted at signs of renewal, however, saying back-to-school season is off to an "encouraging" start. Ullman said the back-to-school strength came as a result of  "customers' growing confidence in the brands and styles we offer." 

The company has been working to rebound from a series of strategic blunders. Perhaps the most high-profile mistake was tapping Apple (AAPL) alumnus Ron Johnson for the chief executive role. Johnson eliminated promotions and sent customers fleeing. 

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The stock is down about 32% year to date, but shot up as much 5% in early trading as investors grew more optimistic about the current-quarter and prospects for the future. 

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