Strong sales at Home, Sephora, Footwear and Handbags divisions propelled J C Penney Company Inc (NYSE:JCP) to a better than expected fourth quarter. Sales in the quarter were up by 2.5%, after years of slow down, to highs of $4 billion. Same-store sales, on the other hand, were up by 4.1%, topping analysts’ expectations.
Solid Sales Momentum
A 2.5% sales increase could however not prevent the department store retailer from posting a net loss for the quarter. A $131 million net loss underscores the fact that J C Penney Company Inc (NYSE:JCP) is not out of the woods yet. The stock is currently trading at highs of $8.44 a share the Street having reacted positively to the current momentum on sales growth.
JCP impressive sales growth is in contrast to what it peers posted for the holiday season. Macy’s, Inc. (NYSE:M), Kohl’s Corporation (NYSE:KSS) and Nordstrom, Inc. (NYSE:JWN) did not have the best of runs in the holiday season. The retailer’s sales in the quarter were mostly hurt by an unusual warm weather that hurt sales for cold weather clothes.
Buoyed by impressive sales in the quarter JCP expects its 2016 sales to increase by between 3% and 4%. The retailer is especially banking on online sales as well as private brands that continue to register solid sales.
New Sales Promotion
J C Penney Company Inc (NYSE:JCP) is tweaking its promotional activities as it looks to attract more people into its stores. ‘Get Your Penney’s worth’ is the retailers new value proposition that seek to ensure customers get value for their money while shopping.
Under the program the company will be selling some items for a penny starting February 28. Some of the items on offer for a penny include the apparel brand Arizona. Other items on offer will not be revealed in advance as part of a marketing strategy that seeks to entice shoppers to make visits to stores.
It is also to run a robust marketing campaign spearheaded by a 30 second ad running on cable and network television. The program is part of J C Penney Company Inc (NYSE:JCP) efforts that seeks to revitalize its prospects having closed 40 stores last year.
