• by Sarah Mahoney , August 14, 2015

Bucking the trend of disappointing sales for mid-tier retailers, JC Penney gave observers an unexpected bright spot, with same-store sales for the second quarter climbing 4.1%. And its results made a welcome contrast to downbeat numbers from rival Kohl’s, as well as gloomier reports earlier in the week from both Macy’s and the Gap, evidence that while consumers may be willing to spend, they underwhelmed by what they’re finding at mainstream stores.

For the quarter, JC Penney says sales increased to $2.88 billion, compared with $2.8 billion in the same period of 2014. And operating income for the Plano, Texas-based chain improved 46% compared to last year, with a loss of $38 million. The company says sales were especially brisk in men’s, home, and fine jewelry, as well as its Sephora units, which continue to rack up double-digit increases. And while all regions showed increases, gains were strongest in the western and central regions.

Analysts at Standard & Poor’s were especially cheered by strong results in the home department, which it says is an important driver in the company’s turnaround quest. “While these ongoing improvements partly reflect recovery from past poor performance, we believe prospects for the new (and recently expanded) management team to maintain these improvements supports the positive outlook.”

The news at Kohl’s, however, was way less upbeat. Total sales inched up 0.6% to $4.27 billion, compared with $4.24 in the comparable period a year ago, but on a same-store basis, sales rose 0.1%. And net income fell 44% to $132 million, compared with $232 million a year ago.

The Menomonee Falls, Wisc.-based company described the results as “well below plan,” and blamed the dip on a larger-than-expected shift of sales in tax-free states from July into August.

Giving the results a C+, Charles Grom, an analyst who follows the company for Sterne Agee/CRT, writes that it “ultimately raises concerns about the efficacy of Kohl’s Loyalty/brand mix/omni strategy in what is certainly looking like a difficult environment for department stores.” He adds that if the chain wants to retain the 32 million or so loyalty members it just added, “Kohl’s needs to more quickly introduce a stronger portfolio of national brands across many existing categories. We fear that the company is missing out on a unique opportunity to permanently “win-over” these loyalty members.”