J.C. Penney said it expects first-quarter revenues to come in at about $2.64 billion, 16.4% lower than the $3.15 billion logged in the same period in 2012. The forecast came in short of the Street's view of $2.74 billion, but shares still rallied more than 2% in extended trading.

The struggling retailer also said comparable store sales are expected to have declined 16.6% on a year-to-year basis.