JCPenny same-store sales improve 6 percent in Q2

REPORT_ For the second quarter ended August 2, 2014, JCPenney reported net sales of 2.80 billion dollars compared to 2.66 billion dollars

in the second quarter of 2013. Same store sales increased 6 percent for the quarter. Online sales through jcp.com were 249 million dollars for the quarter, up 16.7 percent versus the same period last year.

Commenting on the development, Myron E. (Mike) Ullman, III, Chief Executive Officer, said, “Our turnaround initiatives continue to produce improved financial results. In the second quarter, we gained additional market share while significantly increasing gross margin in a highly competitive promotional environment.”

Women's and men's apparel and accessories, home and fine jewelry were the Company's top performing merchandise divisions in the quarter. Sephora inside JCPenney also continued its strong performance. Geographically, all regions delivered sales gains over the same period last year with the best performance in the southern and western regions of the country.

For the second quarter, gross margin was 36 percent of sales, compared to 29.6 percent in the same quarter last year, representing a 640 basis point improvement. Gross margin improved sequentially throughout the quarter and was positively impacted by improvement in the Company's clearance sales performance.

The Company expects comparable store sales to increase mid-single digits for the third quarter of 2014. Gross margin is expected to be in-line with second quarter of 2014. For the full fiscal year, comparable store sales are expected to increase mid-single digits and gross margin is expected to improve significantly versus 2013.