• by Sarah Mahoney  @mahoney_sarah, September 1, 2015

A few weeks after JC Penney impressed observers with upbeat numbers and encouraging sales trends—especially in its home, Sephora and men’s aisles—Deutsche Bank upgraded its rating of the retailer, saying the store is finally getting its merchandising mojo back.

“Management is confident that JCPenney has the right assortment to cover the fashion pyramid, especially as relaunched private label offerings gain traction,” writes analyst Paul Trussell, who is now rating the Plano, Texas-based company as a buy.

He adds that early reactions to its improved footwear presentation, which was finished in late July, as well as preliminary results tests on changes to its center-core offerings, “are encouraging.”

Trussell says that even eight years after being added in to many locations, Penney’s Sephora units are still powering growth. And there’s room for more: “Cross-merchandising, buy online pick-up in store same day, and a revamped loyalty program are meaningful opportunities ahead.”

In its most recent results, Penney’s net sales climbed to $2.88 billion, up from $2.8 billion in the second quarter of last year, with same-store sales rising 4.1% for the period.

And while it’s too soon to say how the company fared throughout the back-to-school season, YouGov BrandIndex data says it was the strongest department store among parents with kids 18 and younger. Overall, of the 28 stores tracked by the index, Penney came in fourth in both buzz and purchase consideration, beating out Kohl’s. (The top three remain Walmart, Target, and Old Navy.)

Separately, Macy’s is looking to build its buzz, too, announcing a partnership with Nineteenth Amendment, an online fashion tech start-up, on its website. The exclusive collaboration is meant to introduce its Millennial shoppers to the group’s stable of 300 up-and-coming designers around the world.

“This innovative concept gives customers a made-to-order product and a great shopping experience, while in turn helping new fashion talent find and build an audience, piece by piece,” says Terry Lundgren, Macy’s, Inc. CEO, in its announcement. “We’re excited to give Macys.com customers the opportunity to connect with the design stars of tomorrow while they shop for unique limited-edition apparel.”