J.C. Penney Co Inc. announced a smaller-than-expected quarterly loss on Thursday, because the department store operator’s efforts to cut prices and screen unprofitable businesses paid off, sending shares of its penny inventory higher by as a lot as 14%.
The 117-year-old retailer, one of the worst-hit by the surge in online shopping previously decade, reaffirmed it anticipated positive free cash flow this year and would have funds of around $1.5 billion accessible at the end of 2019.
The Plano, Texas-based retailer also gave a prediction for 2019, the primary full-year outlook it has provided since withdrawing its 2018 expectations in November to provide new Chief Executive Jill Soltau time to settle in.
Penney’s sales proceed to fall, down 9% within the quarter, and it forecast that similar sales would drop in 2019 within 7% and 8%, worse than present analysts’ expectations, according to Refinitiv data.
But the firm’s net loss more significant than halved, to $48 million, in contrast with the same time a year ago, and Soltau said the company was profiting from a decrease in excess inventory and curbing in permanent price markdowns.
The corporate introduced on Thursday it would begin promoting secondhand women’s clothes and handbags at 30 stores in partnership with fashion resale market thredUP, starting this week.
Penney finished the quarter with liquidity of about $1.70 billion.
Shares in the firm have sunk 45% this year as of Wednesday’s close. On Thursday, they were up 4% at $0.59 in the afternoon.