J.C. Penney Co. rose as much as 10 percent in early trading after posting third-quarter same-store sales that topped analysts’ estimates, signaling that the department-store chain’s turnaround is on track.
Comparable-store sales increased 6.4 percent in the period through October, the Plano, Texas-based company said Wednesday in a statement. Analysts projected a 4.5 percent gain, according to Retail Metrics.
Newly installed Chief Executive Officer Marvin Ellison is trying to build on the work of predecessor of Mike Ullman, who helped J.C. Penney recover after a failed reinvention that cost it a third of its revenue, and accelerate sales growth at the century-old retailer. J.C. Penney plans to release full third-quarter results on Friday.
The shares climbed as high as $9.56 in premarket trading in New York. J.C. Penney already had advanced 34 percent this year through Tuesday.