PLANO, Texas–J.C. Penney posted a loss of net income of $352 million in the first quarter ended May 3, compared to a $348 million loss in the year-ago period, but reported a 6.3 percent net sales increase, to $2.80 billion. Same-store sales increased 6.2 percent and improved sequentially each month within the quarter, the retailer said, and home was one of the top-performing divisions.
“It is clear that our efforts to re-merchandise many areas of the store and revamp our messaging to the customer are taking hold,” said Myron (Mike) Ullman, CEO. “Despite a difficult retail environment, our strong performance during the Easter holiday period and other key promotional events enabled us to deliver better than anticipated sales results. We expect to carry this momentum into the second quarter as we continue to position the company for long-term profitable growth.”
The company also announced that it has obtained a fully committed and underwritten $2.35 billion senior secured ABL credit facility to replace the company’s existing $1.85 billion ABL bank line, which matures in April 2016. The new financing is expected to provide better pricing terms and is expected to add $500 million of incremental liquidity during peak seasonal needs, the company said. “With a solid plan in place to complete the turnaround, we are pleased with the support of our banking partners and their confidence in our ability to succeed,” Ullman said.