J.C. Penney Gains as Sales Forecast Signals Turnaround
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J.C. Penney Co. surged 25 percent after forecasting an increase in annual revenue and margin expansion, prompting Chief Executive Officer Mike Ullman to predict its turnaround will be completed this year.
Same-store sales will rise by a mid-single digit percentage and gross margin will “significantly” improve this year, the Plano, Texas-based company said yesterday in a statement. Liquidity at the end of 2014 is projected to remain at $2 billion. The shares rose to $7.47 at the close in New York for the biggest gain since at least 1980. Even with the jump, the stock is only at the highest price since Jan. 9.