J.C. Penney (NYSE: JCP) reported Q3 EPS of ($0.47), $0.08 better than the analyst estimate of ($0.55). Revenue for the quarter came in at $2.9 billion versus the consensus estimate of $2.88 billion.

Comps rose 6.4 percent.

Marvin Ellison, chief executive officer, said, "The continuation of our strong sales performance this quarter demonstrates ongoing progress towards achieving the Company's long-term financial targets. We grew the top line, improved margin and intensified our expense discipline. As we look ahead to the fourth quarter, we are well positioned to compete effectively during the key holiday shopping period thanks to the hard work and dedication of all our associates." Ellison continued, "While there is significant work to do to improve our Company, the JCPenney team remains determined to regain our status as a world-class retailer."

For the quarter, all merchandise divisions had positive comp sales gains over last year. Men's, Home, Footwear, Handbags, and Sephora were among the Company's top performing divisions. Geographically, all regions experienced sales growth compared to the same period last year, with the best performance in the southern and western regions of the country.

For the third quarter, gross margin improved by 70 basis points, on top of a 710 basis point improvement in the third quarter of last year, to 37.3 % of sales, driven by improvements in our clearance and promotional selling margins and supply chain productivity.

The Company's 2015 full-year guidance is as follows:

• Comparable store sales: expected to increase 4 percent to 5 percent;
• Gross margin: expected to improve 100 to 150 basis points;
• SG&A: expected to decrease approximately $120 million;
• Adjusted EBITDA: approximately $645 million;
• Depreciation and amortization: approximately $615 million;
• Interest expense: approximately $415 million;
• Capital expenditures: approximately $300 million; and
• Free cash flow: expected to be breakeven.

For earnings history and earnings-related data on J.C. Penney (JCP) click here.