JCP - 3 Ways J.C. Penney Is Pushing for a Turnaround
J.C. Penney (NYSE: JCP) got a surprising bump after its third-quarter earnings report Friday.
The stock jumped as much as 11.8% after its earnings release that morning and finished the day up 6.4%. The move came even as comparable-store sales plunged 9.3% in the quarter, in part because of the retailer's recent decision to stop selling appliances and furniture.
But the company did show some positive signs as gross margin increased 350 basis points to 35.4%, and it lifted its adjusted EBITDA guidance for the year from a range of $440 million to $475 million, to at least $475 million. Management also said the company would be free-cash-flow positive for the year, reassuring investors that the business itself is at least able to tread water right now.