In the second quarter of this year, there was an increase of 6% in Comparable Store Sales for JC Penny (NYSE:JCP). The market place was so competitive that the entire retail industry responded strongly to this increase. It will not be shocking to hear that similar increases in JC Penny (NYSE:JCP)’s sales will occur throughout 2014.
There was a 5% increase in overall sales which equals $2.8 million. This increase occurred due to the large amount of sales of accessories and clothing for both women and men. The company also pointed out that Sephora fragrances and cosmetics caused a 25% increase in total sales and an increase in comp. store sales of 11%.
There was a recovery in oppressed home-store with an increase of 25% along with sales gains on fine jewelry items.
Keeping all this in mind, it was no coincidence that there was an increase in gross margin of the company. This showed that the year had a very positive outlook. It is expected that the company may generate quite a lot of cash flow as the year draws to a close.
It was reported that net earnings grew by $325 million which countered the gigantic loss JC Penny (NYSE:JCP) had to suffer a year before. In its quarter, JC Penny (NYSE:JCP) suffered a loss of about $0.56 which is much less than the figure of $0.93 that was predicted by analysts.
The retail environment majorly consists of tremendous amounts of competition, hostility and commotion this year.
The earnings for the second quarter by most of the major and a few minor retail companies showed weaker gross margins and lowered forecasts for the year-end, which shows their concerns of having a not so bright future. The lower forecasts were predicted mostly to avoid overstating their possible future achievements, which may cause trouble for them.
JC Penny (NYSE:JCP) is improving drastically from the weaker era of when Ron Johnson was around. It is also predicted that this improvement will continue to occur as the year’s progress making JC Penny (NYSE:JCP) an object of envy for its competitors.
Customer loyalty is increasing for the company as a larger segment is coming back to enjoy the prosperous time the company is facing. Its exclusive brands are doing quite well while national brands are not much behind in sales which include both Izod and Nike (NYSE:NKE).
It is all because of Mike Ullman and the team that he has set up that the company is seeing such drastic and long lasting results. There are still quite a number of challenges that must be dealt with as a margin is still present but 2Q14 gives shows that any consumer is geared up to give the company another shot with the condition that he/she will be provided top notch quality, up to date fashion, private labels and strong values.
JC Penny (NYSE:JCP) is really working hard to excel and its results are proving to stir up the competition in the market.