JCP J C Penney Company Inc

JC Penney Co. logged a 3.9% increase in sales at existing stores during the holiday period, the latest sign that the retailer's turnaround is taking hold.

The strong showing during the crucial holiday shopping season comes in contrast to rival Macy's Inc., which on Wednesday said it would slash thousands of jobs and shutter about 40 stores after existing-store sales dropped 4.7% in November and December. Macy's blamed a warmer-than-usual winter for most of the decline.

For its part, Penney said warm weather significantly affected apparel sales during the last two months, but the company said its strong online showing and focus on private brands had helped boost sales. The company will report its full fourth-quarter results on Feb. 26.

The Plano, Texas-based retailer has reported a string of losses over recent years as it struggled with its online sales strategy and attempts to attract customers with its merchandise. Since taking the helm in August, Chief Executive Marvin Ellison has pulled Penney back from the brink of financial collapse by improving e-commerce capabilities, reining in expenses and naming a new chief merchant.

"We have much work to do," said Mr. Ellison, adding that Penney expects to benefit from its digital progress this year.

Shares in the company, down 25% over the past three months, slipped 0.1% in premarket trading amid a broader market slump.

Write to Lisa Beilfuss at lisa.beilfuss@wsj.com

(END) Dow Jones Newswires

January 07, 2016 08:15 ET (13:15 GMT)

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