J.C. Penney posted yet another round of poor financial results—even as the company said it has seen signs of a turnaround.
For the second quarter of fiscal 2013 (ended Aug. 2), the company posted a $586 million net loss and 11.9 percent comp sales decline, which it attributed to “failed prior merchandising and promotional strategies.” Overall net sales were $2.66 billion, compared with $3.02 billion the prior year.
However, the store said that back-to-school sales were “encouraging,” adding that sales improved each month within the second quarter—a trend it predicts will continue through the second half.
A statement tried to ease concerns about its financial position, noting that the company expects to end the year with in excess of $1.5 billion in overall liquidity.
Online sales were a relative bright spot: They were down just 2.2 percent compared with the same period last year.
“There are no quick fixes to correct the errors of the past,” J.C. Penney CEO Myron E. (Mike) Ullman III said in a statement. “That said, we have identified the challenges, put solid plans in place to address them, and have experienced and capable people in key roles to do so.”