Tomahawk, WI 11/08/2013 (BasicsMedia) – J.C. Penney Company, Inc. (NYSE:JCP) has been undergoing a series of restructuring as it tries to make meaningful progress in the market to boost its performance and net earnings for the year ending. So far things have been a bit slow but slight improvements are being seen in the various sectors of the company. For October alone the company recorded increased same store sales of 0.9%making it increase its 490 basis point as compared to September An increase of the company’s sales by 37.6% as compared to the same quarter a year ago is a clear indication of continued acceleration in the company’s online business. The month of October also saw the company record good conversions as compared to last year an indication of positive customer response to its promotional events with inventory levels.

J.C Penney according to its Chief Executive Officer has continued to address challenges it faced in the previous quarters and is on track for profitable growth as at the close of the current financial year. Despite the federal government shutdown in October and the challenging consumer environment the company recorded increased sales for the first time since 2011. The Company has also been recording increased sales for home and men apparels something it had not attained for the longest time as well as in women accessories sales. Restoration of inventory sales has been seen as the main cause of the recent upsurge as brands such as Levi’s®, Nike®, Carters®, Dockers® and Vanity® continue to receive exception reception in the market.

J.C Penney has already made strides in remerchandising and reconfiguration of its home department for stores and online to boost its earnings and reflect customers shopping patterns for the most compelling brands. The Home segment of the business saw the largest increase in sales as compared to other divisions of the company. Sales for the Home merchandise grew by 50% from last year sales with the sales in the home category constituting half of the total sales. The month of October also saw Men and children apparel performing exceedingly well in the market a clear indication the company is on the path for full recovery in terms of increased profit margins. The company can now be buoyed with its 30 newly opened stores that have brought its total locations to 446.

The only challenge J.C Penney is facing at the moment is reduced gross margin that was slightly impacted by an overhang of inventory from the first two quarters of the year accompanied with higher clearance level on units sold as well as the company move to come back to promotional pricing strategy. October still recorded the highest margin levels for the year showing sequential improvements. J.C Penney move to consistently restock items that customers consistently ask for as well as the return of key promotional marketing events has seen conversion improve even more. J.C Penney as a result recorded increased average transaction value as well as increased units transacted for the month of October. The company is expected to release its third quarter earnings at an event on Wednesday November 20.

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