JCPenney headed for full-year profit

JCPenney (NYSE:JCP) has cut its quarterly losses in half and the company believes it will report a profit for the full year.

The retailer even managed to report a comp-store gain of 2.2 percent, a rarity among retailers this quarter. This trend is expected to continue, with comp-stores sales trending between 3 and 4 percent, according to management. This could put the retailer on track to profitability for the first time in five years.

JCPenney's turnaround is being driven by in-store shops from Sephora, accessories, footwear and home businesses. The company has been growing the latter with the addition of appliances and window coverings.

The results are a lower dependence on seasonal items and apparel, categories that have been dragging down sales at many retailers.

"We are pleased with the sequential improvement we achieved throughout the second quarter, and our solid performance across all key metrics is encouraging. We exceeded our profitability expectations," said Marvin Ellison, chairman and CEO. "We are continuing to win market share and improve the bottom line of our business."

For more:
- see this JCPenney financial release

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