JCPenney’s October Sales Gain

JCPenney Co. Inc. (Plano, Texas) reported a 0.9 percent same-store sales gain for the month of October. It was the retailer’s first monthly same-store sales gain in nearly two years.

The gain was credited to deep discounts and the decision to resume stocking merchandise that Penney's traditional shoppers liked.

Returning ceo Myron Ullman also pointed to the return of popular in-house brands, such as St. John's Bay, that were jettisoned by his predecessor, Ron Johnson, during Penney's ill-fated transformation last year.

Ullman said Penney also saw “significant” sales increases in certain national brands – Levi Strauss & Co. (San Francisco), Nike Inc. (Beaverton, Ore.) and Izod (New York).

Of course, as Ullman pointed out, the aggressive discounting – while driving sales and clearing out inventory – will dent third quarter profits. But, he said, gross margins have improved each month during the quarter.