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RAPAPORT... J.C. Penney Company Inc. reported that revenue increased 5.1 percent year on year to $2.8 billion in the second quarter that ended on August 2, while same-store sales rose 6 percent. The retail giant reported a loss of $172 million, or 56 cents per share, compared with a loss of $586 million, or $2.66 per share, one year earlier. JCPenney observed that fine jewelry performed very well during the quarter, as did apparel and accessories and home-related merchandise. While all regions of the U.S. delivered sales gains during the period, the strongest performance was observed in the southern and western states. Inventory was reduced 9.7 percent year on year to $2.85 billion during the quarter and the retailer added that it was pleased with the current level and makeup of its merchandise. Mike Ullman, III, the CEO of JCPenney, said, "Our turnaround initiatives continue to produce improved financial results. In the second quarter, we gained additional market share while significantly increasing gross margin in a highly competitive promotional environment. With our unique assortment of powerful private brands, key national brands and exclusive attractions - all at prices customers can afford - we expect to continue driving profitable sales this back to school season. As we approach the completion of our turnaround, we are focused on reestablishing JCPenney as the premier shopping destination for the moderate consumer."
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