Miami, FL – October 22, 2025
After several years of financial struggle, J.C. Penney finally shows signs of recovery. According to its latest financial report, the company narrowed its sales decline and closed the second quarter in profit, something it hadn’t achieved in a while.
Total net sales for the quarter dropped 3.4% year-over-year, reaching $1.4 billion, while credit income climbed 10% to $65 million. Despite the slight dip in sales, the retailer posted a net profit of $110 million, compared to a $33 million loss during the same period last year.
A More Stable Margin and Growing Categories
Gross margin held at 38.7%, only slightly below last year’s 39.4%, thanks to improved markdown and distribution management. The company reported strong performance in basics, sleepwear, footwear, home goods, kidswear, and men’s apparel.
Store and online traffic improved, supported by a refreshed marketing strategy emphasizing “surprising finds” and affordable style. J.C. Penney’s brands — Xersion, Modern Bride, Arizona, and Liz Claiborne — performed well, along with national labels like Clarks, Skechers, and Adidas.
A Stronger Operation Under Catalyst Brands
Since early 2025, J.C. Penney has operated under Catalyst Brands, the same group managing Aéropostale, Brooks Brothers, Eddie Bauer, Lucky Brand, and Nautica. This integration has allowed the company to streamline sourcing, distribution, and administrative operations. Management expects the full benefits of these synergies to be realized by 2027.
During Q2, the cost of goods sold dropped 2.4%, helping offset higher tariffs and shipping costs. The company said better markdown control expanded category margins and helped maintain profitability amid challenging conditions.
What This Means for the Liquidation Market
This is an encouraging sign for our wholesale buyers at Orotex Liquidation. When major U.S. retailers like J.C. Penney strengthen their operations and clear excess inventory, they directly fuel the liquidation market with fresh, branded merchandise at competitive prices.
This translates into new opportunities for wholesalers, exporters, and resellers, who gain access to pallets and truckloads filled with current-season clothing and household products — many still new with retail tags.
As retailers optimize inventory and introduce new collections, the liquidation supply chain becomes more prosperous, diverse, and profitable. That’s why Orotex Liquidation is committed to closely monitoring the U.S. retail sector to bring our customers the best wholesale deals and premium liquidation pallets available in Miami.
👉 At Orotex Liquidation, we keep our clients informed about the latest retailer developments. When big brands move, liquidation buyers benefit.