J.C. Penney Tumble Shows Mounting Expectations for Comeback

J.C. Penney Co. is in the second year of a turnaround from the disastrous Ron Johnson era, and it’s made headway by reviving sales growth and improving profit margins. And yet, investors want more.

The department-store chain reported its best same-store sales growth for the fourth quarter in three years yesterday after the market closed. Gross margin, a key measure of profitability, surged 5.4 percentage points. And operating income was $63 million, which ended of a streak of 13 straight losses.