NEW YORK, NY / ACCESSWIRE / November 13, 2017 / Shares of J. C. Penney were roaring on Friday after the retailer posted better than expected third quarter results. Nordstrom also posted its third quarter report last week that although beat on both the top and bottom line had a same-store sale miss.

RDI Initiates Coverage on:

J. C. Penney Company, Inc.
http://www.rdinvesting.com/report/?ticker=JCP

Nordstrom, Inc.
http://www.rdinvesting.com/report/?ticker=JWN

J. C. Penney Company, Inc. shares closed up 15.27% this past Friday on high volume as the struggling retailer posted comparable sales numbers that beat estimates. It was an exciting day for the stock as it saw trading volume roughly triple compared to usual. The department store retailer has seen gains of over 30% last week as it continues its turnaround efforts. In its third quarter report, the company revealed that comparable sales rose 1.7 percent, better than the 0.6-0.8 percent rise it had forecast last month. EPS excluding items came to a loss of 33 cents a share which was still better than the 40-45 cents loss the company expected and better than the 42 cents loss that Wall Street expected. Net sales at $2.81 billion also beat Wall Street's expectation of $2.78 billion. ?During the third quarter, we took aggressive actions to clear slow-moving inventory, primarily allowing for an improved apparel assortment heading in to the holiday season," said CEO Marvin Ellison on the earnings call. He continued, "While these actions had a negative short-term impact on profitability in the third quarter, we firmly believe it was the right decision for the company as we transition into the fourth quarter and fiscal 2018." Despite the gains, the stock is still down over 60% YTD.

Access RDI's J. C. Penney Company, Inc. Research Report at:
http://www.rdinvesting.com/report/?ticker=JCP

Nordstrom, Inc. shares closed up flat on Friday with trading volume at a little over 7 million shares. The company released its third quarter report last week where executives said it hit a new low. For the quarter, sales saw a 5% drop in locations that have been opened at least a year. This was the lowest drop the company has seen in the last 14 quarters. Co-president Blake Nordstrom remarked, "In hindsight, our sales plan at the beginning of the year was too aggressive. As a result, we found ourselves over-inventoried without the fluidity necessary to chase the business." For the quarter, the retailer posted EPS of 67 cents which was a beat compared to the 63 cents expected. Revenue at $3.63 billion was also a beat compared to the $3.58 billion expected. The same store-sale decline of 0.9% was a lot wider than the 0.2% expected by Wall Street.

Access RDI's Nordstrom, Inc. Research Report at:
http://www.rdinvesting.com/report/?ticker=JWN

Our Actionable Research on J. C. Penney Company, Inc. (NYSE: JCP) and Nordstrom, Inc. (NYSE: JWN) can be downloaded free of charge at Research Driven Investing.

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