Penny Wise
Black Enterprise|September 2016

IF YOU’VE WALKED INTO ONE OF the more than 1,000 JCPenney stores across the U.S. and Puerto Rico lately, you may have been surprised to find what looks like—pardon the pun— a shiny, new Penney.

Penny Wise

Many of the stores have been refreshed with updated areas showcasing handbags and jewelry, called center core. This year, an additional 60 stores have seen the introduction of a Sephora inside JCPenney makeup boutique. Also, 120 of the chain’s hair salons have been rebranded in a partnership with InStyle magazine and now have attractive features, such as modern signage and exposed brick.

The numbers behind the retailer are looking just as bright. It has 87 million active shoppers, having recouped the 20 million shoppers it lost between 2011 and 2013. Sales per square foot were $165 in fiscal 2015, up 12% from two years prior—the best they’ve been since fiscal 2011.

With the first half of the year demonstrating growth—comparable store sales rose 2.2% in the second quarter—JCPenney is sticking to its earnings estimates. It’s projecting EBITDA (earnings before interest, taxes, depreciation, and amortization) of $1 billion for 2016 and $1.2 billion for 2017, up from an adjusted $715 million in 2015 and a restated $377 million in 2014. All of this good news has boosted analyst and investor confidence in the stock; JCPenney shares have rallied more than 47% this year.

The man behind the turnaround, Chairman and CEO Marvin R. Ellison, is—not surprisingly—also making headlines. But the 51-year-old, who became president in 2014 and took over as chief executive last year, is more often lauded for his steadiness than his shine. Last year, The Dallas Morning News proclaimed that Ellison’s story is “classic JCPenney” with his hardworking, middle-income upbringing, and his willingness to grind every day. A Fortune cover story in March dubbed him “the opposite of flashy,” with astute attention to details, especially those often overlooked as obvious, and a relatability to the Penney customer.

This story is from the September 2016 edition of Black Enterprise.

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This story is from the September 2016 edition of Black Enterprise.

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