holiday sales rise; retailer has $2 billion in liquidity
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[February 05, 2014]
(Reuters) — On Tuesday, J.C. Penney Co Inc <JCP.N> said comparable
sales rose 2 percent during the holiday quarter, reporting its first
three-month period of growth in two years.
The struggling retailer, trying to win back shoppers after a
disastrous attempt to go upmarket in 2012, also said it had total
available liquidity of more than $2 billion at the end of the fiscal
year. It provided the figure, in line with its earlier forecasts, as
investors had been concerned that its deep discounting was sapping
Penney shares rose 4 percent to $5.91 in premarket trading after
closing at their lowest levels in decades on Monday.
In 2013, Penney lined up a $2.25 billion financing package and in
September sold nearly $800 million in new shares to further shore up
Penney's sales fell 25 percent in 2012 as former Chief Executive
Officer Ron Johnson jettisoned discounts and began to change the
company's stores into collections of mini boutiques to house trendy
CEO Myron Ullman said in a statement that the department store
operator's turnaround "is on track."
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Comparable sales consist of sales at stores open at least a year as
well as online sales.
Penney last month said it would close 33 of its 1,100 stores and cut
(Reporting by Phil Wahba; editing by Lisa Von Ahn)
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