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The
department store operator's shares rose 2.8 percent to $7.20 in
premarket trading.
Same-store sales rose 3.9 percent in the last two months of the
year, the company said.
J.C. Penney's strong results were in stark contrast to those of
rival Macy's Inc <M.N>, which reported a 4.7 percent drop in
comparable sales on Wednesday and said it would cut jobs and
shut stores.
Macy's attributed 80 percent of the fall in sales to unusually
warm weather and the rest to the strong dollar, which kept
tourists from spending at its flagship stores in upscale
locations in the United States.
"Despite unprecedented warm weather that significantly affected
apparel sales across the company, our focus on private brands,
enhanced omnichannel execution and compelling gift giving
selection resulted in strong holiday sales," J.C. Penney Chief
Executive Marvin Ellison said in a statement.
Ellison also attributed the strong sales to its online business,
which posted record sales during the holiday season.
J.C. Penney also reaffirmed its full-year adjusted earnings
target of $645 million before taxes on Thursday and the company
said it planned to generate positive free cash flow in fiscal
2015.
Up to Wednesday's close of $7.00, J.C. Penney's shares had risen
7 percent in the past 12 months, compared with a nearly 1
percent drop in the S&P 500 index <.SPX>.
(Reporting by Siddharth Cavale in Bengaluru; Editing by Kirti
Pandey and Saumyadeb Chakrabarty)
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