J.C. Penney rips higher after Q1 beat and promising credit terms

|About: J.C. Penney Company Inc. (JCP)|By:, SA News Editor

J.C. Penney (JCP) reports same-store sales increased 6.2% in Q1 as the retailer ran up against a soft comp.

The retailer said it improved sequentially during the month and boosted its gross margin rate by 230 bps to 33.1%.

On the cost side, things got really interesting for the company. SG&A expenses alone were down $69M.

J.C. Penney has a new "fully committed and underwritten" $2.35B secured ABL credit facility which buys it some more breathing room with the maturity now extended.

Q2 Guidance: Comp growth mid-single digits; gross margin improvement vs. LY; S&G expenses lower; depreciation and amortization of $155M.

JCP +19.9% AH.