An increase in J.C. Penney's shares shows the company's progress with its reorganization, experts say.
According to The Wall Street Journal, the retailer saw a 19 percent increase in shares during the last fiscal quarter, marking the first time financial results were above analyst's predictions in over two years - especially in April, when numbers rose significantly. These figures didn't include sales from new J.C. Penney locations, nor stores that had been closed.
An analyst at Sterne Agee told The Journal the retailer is still approaching the company's reorganization cautiously.
"We still have our reservations on the turnaround and would not chase," Grom said. "The reality is that JCP is taking steps in the right direction, but traffic needs to recover in order for us to become true believers."
According to Reuters, investor Bill Ackman resigned from the company's board in August. This came after conflict arose regarding where the retailer was headed, and how management was performing. Ackman was also not pleased with J.C. Penney CEO Mike Ullman and wanted to replace him.
Ackman subsequently sold all of his company shares back to the retailer.
J.C. Penney filed the deal with the U.S. Securities and Exchange Commission with statements from Ackman's hedge fund Pershing Capital Management in August, Reuters reported.
Pershing pursued purchasing the retailer in Oct. 2010, while company shares were $25 apiece, according to CNN Money. The company then sold 39 million shares to Citigroup at $12.90 per share, resulting in $500 million in losses for Ackman.
J.C. Penney endured losses, firings and weathered a storm of media attention in 2013, and has only just returned to a point where it is making strides.
Ullman previously told USA Today that the retailer was moving on from last year's issues.
"While 2013 brought a lot of change and challenges to J.C. Penney, the steady improvements in our business show that the company's turnaround is on track," Mike Ullman, J.C. Penney CEO said in a statement.
An analyst at Imperial Capital LLC previously told Bloomberg Businessweek other companies strive to be like the retailer.
"For comparable sales to be up two percent just underscores how challenged J.C. Penney is," Mary Ross Gilbert said. "In this competitive environment, it shows how tough it is to regain lost share."
