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Bloomberg
JC Penney Co shares surged after the company raised its profit forecast, even amid another quarterly sales decline, as the battered department-store chain’s turnaround plan gains more time to play out.
Excluding some items, earnings before interest, taxes, depreciation and amortisation will exceed $475 million this year, up from a previous forecast of between $440 million and $475 million. The chain also posted a drop in inventory in the third quarter, a sign its struggles with buildups of unpopular merchandise is easing.
JC Penney’s report shows it’s making progress in improving its operations, and that cheered investors. “We are beginning to see results — both in our numbers and how we operate as a business,†Chief Executive Officer Jill Soltau said.