J.C. Penney Posts Smaller Loss as Sephora, Menswear Drive Sales

PLANO, United States — J.C. Penney Co. posted a second-quarter loss that was smaller than analysts estimated as sales of men's clothing and Sephora cosmetics boosted sales.

The loss was 45 cents a share, the Plano, Texas-based department-store chain said in a statement Friday. Analysts projected a loss of 50 cents. Sales rose 2.7 percent to $2.88 billion, topping projections of $2.86 billion.

J.C. Penney is in the third year of a turnaround following an attempted reinvention that drove customers away. Mike Ullman retook the CEO job in April 2013 and stabilized the century-old chain by undoing many of predecessor Ron Johnson’s changes. Marvin Ellison, a former Home Depot Inc. executive, took the reins this month after sharing duties with Ullman since November.

The net loss in the quarter through Aug. 1 narrowed to $138 million from $172 million a year earlier, the company said.

The shares rose 10 percent to $8.89 at 7:48 a.m. in early trading on Friday. Through Thursday, the stock was up 25 percent this year.

By Matt Townsend; editors: Kevin Orland, Paul Jarvis.