Plano, TX, August 17-- J.C. Penney posted a second-quarter operating profit, reversing a year-earlier loss, helped by inventory controls and strong department store sales.
The company reported second quarter earnings of $0.23 per share compared to a loss of $0.03 per share last year. Earnings for the quarter benefited from strong department store sales, continued improvement in gross margin, and SG&A leverage.
Penney had forecast earnings of $0.21 to $0.23 per a share. Analysts, on average, had expected $0.23 per share.
J.C. Penney, which recently sold its money-losing Eckerd drugstore business, posted a loss from discontinued operations of $71 million, net of taxes, reflecting Eckerd's operating loss as well as adjustments to the final terms of the sale.
Retail sales for the second quarter rose 5.8 percent to $3.59 billion, while sales at department stores open at least a year, or same-store sales, rose 7.1 percent. Catalog/Internet sales fell 1.6 percent.
