By Austen Hufford 

J.C. Penney Co. on Friday reported another loss in the quarter amid underwhelming sales growth, as department-store operators continue to adjust to shifting shopper trends.

Shares, up 27% over the past three months, rose 1.6% to $10.09 in premarket trading, as the company's adjusted loss was narrower than analysts expected. Penney's results came after rivals Macy's Inc., Kohl's Corp. and Nordstrom Inc. reported declining sales but saw their stocks jump because the results still surpassed expectations.

Department stores have reported falling profits and lower sales as shoppers are increasingly turning to discount chains and online operators such as Amazon.com Inc. for their clothing and apparel needs. In response, store operators have closed locations and aggressively reduced expenses.

Penney also has tried to expand into areas that are more difficult to buy online, such as appliances. The retailer said it would return to selling appliances in May after a more than 30-year absence. In the quarter, Penney rolled out appliances to more than 120 locations.

The company also is trying to take advantage of its locations by promoting same-day, in-store pickup for online buyers. It expanded that chainwide in the quarter.

Friday, Penney said sales at existing stores grew 2.2%, and the retailer backed its same-store sales guidance for the year, expecting growth of 3% to 4%.

In all for the quarter, Penney's posted a loss of $56 million, or 18 cents a share, compared with a loss of $117 million, or 38 cents a share, a year prior. On an adjusted basis, which excludes restructuring and debt extinguishment costs, the loss was 5 cents a share.

Revenue rose 1.5% to $2.92 billion.

Analysts polled by Thomson Reuters had expected an adjusted loss of 15 cents a share on revenue of $2.93 billion.

Gross margin was 37.1%, compared with 37% a year prior.

Penney said its Sephora, Home, and Footwear and Handbags were among its top-performing divisions.

On Thursday, Macy's said it would close 100 stores as shoppers continue to spend more online and at discount chains. Meanwhile, Kohl's also cut its profit target for the year, and Nordstrom said it took increased markdowns to clear excess goods.

Write to Austen Hufford at austen.hufford@wsj.com

 

(END) Dow Jones Newswires

August 12, 2016 08:59 ET (12:59 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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