Turnaround Plan Boosts Penney Profit
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J.C. Penney Co., the No. 2 U.S. department store chain, said third-quarter earnings almost quadrupled as Chief Executive Allen Questrom’s turnaround efforts take hold. The retailer raised its full-year profit forecast.
Net income rose to $123 million, or 42 cents a share, from $31 million, or 9 cents, in the year-earlier period. Sales in the three months ended Oct. 26 rose 1.9% to $7.87 billion, the company said.
Demand for back-to-school merchandise helped lift sales at stores open at least a year 3.9%, while expenses declined because of cost cutting.
Questrom has centralized purchasing and distribution, allowing J.C. Penney to sell the same merchandise at all its stores, shift goods to outlets where demand is greatest and advertise nationally.
Shares of J.C. Penney rose $2.45, or 13%, to $20.96 on the NYSE.
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