Penney reported same-store sales up 4.8%, reversing last year's declining fortunes. Unlike some peers, it said that Father's Day went well within its aisles. Interesting, seeing how some retailers complained that the holiday didn't drive enough business this year. While Penney's catalog/Internet sales decreased 3.4%, Internet sales increased 25%. The company cited strong sales in its stores as well as improving margins for the good month.
In addition, the company said it now expects second-quarter earnings to come in at $0.09 to $0.13 per share; previously, expectations were $0.09 per share.
It has been a tough June for discounters. We already knew that Wal-Mart
Meanwhile, Sears, Roebuck
It might come as no surprise that Sears would report lower same-store sales, given its recent history of turnaround efforts that have left shoppers unimpressed. However, analysts had been expecting a better June for the retailer, compounding the disappointment. It may very well be that Sears has a long way to go before it works its way back onto the list of retail options for the shopper at large.
As far as J.C. Penney goes, Foolish colleague Seth Jayson recently examined the retailer's perky quarter, wondering if it was a king among retailers. Since then, though, shares have been steadily marching upward (as they have over the last year), leaving the stock trading at 18 times forward earnings today.
When you think of Penney's real estate in your local mall, it may not seem as sexy a retail name as say, Nordstrom
Are you constantly searching for stocks that Wall Street has overlooked? That's what Hidden Gems is all about. Consider a subscription today.
Alyce Lomax does not own shares of any of the companies mentioned.
More from The Motley Fool
1 Dividend Stock to Buy and Hold for Life
Starbucks may no longer be the growth engine it once was, but it’s still a solid choice for investors in search of a stable business with attractive dividend prospects.
Want to Mine Ripple? Think Again
Not all cryptocurrencies work the same.
In Your 40s? Here's a Growth Stock You Should Consider Buying
You likely have a multidecade investment horizon. Here's how to maximize it.