Penney's posts loss in second quarter, but beats analysts' call

Updated

Cost-cutting seems to be working for J.C. Penney Co. (JCP) The clothing retailer had a small loss in the second quarter, but managed to beat analysts' expectations by a penny, which counts as a win in this recessionary economy.
Penney's posted a net loss of $1 million on total sales of $3.9 billion, down 7.9 percent; same-store sales, which are considered a key indicator of a retailer's health, were down 9.5 percent from the same quarter last year. But the company broke even on earnings per share, while analysts had expected a loss of one penny.

The strongest sales came from shoes and women's apparel while children's clothing was weak. Sales were also strongest in the retailer's southwest stores while the southeast region was weakest.

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