Dive Brief:

• J.C. Penney posted a mixed second quarter earnings report Friday morning, with an adjusted loss of 5 cents per share on revenue of $2.92 billion, up from its loss of 41 cents per share on $2.88 billion in revenue in the second quarter last year. Analysts had anticipated a loss of 15 cents per share on $2.93 billion in revenue, according to Thomson Reuters.

• Same-store sales were also a miss in Q2, rising 2.2%, shy of the 2.8% increase from Retail Metrics and the 2.4% increase expected by Thomson Reuters. Sephora cosmetics, home goods, and footwear and handbags were the quarter’s top-performing sales categories.

• J.C. Penney held to its previous 2016 comparable store sales forecast, calling for a 3% to 4% increase, and EBITDA of $1 billion. Shares fell 2.4% Friday in premarket trading, notes MarketWatch.

Dive Insight:

J.C. Penney has defied expectations, managing a turnaround that seems to have brought it back from the dead. "J.C. Penney beat 2Q expectations by 10 cents, joining the parade of improved earnings performance from the department store segment this week," Retail Metrics president Ken Perkins wrote in a note to clients Friday. "Penney’s topped earnings forecasts for the sixth straight quarter and has surprised on the upside in 10 of the last 11 quarters."

Also in 10 of the last 11 quarters, Penney's same-store sales growth has held its ground, with postive or at least flat results, Perkins said. "The company’s comps have outperformed their department store peers in each of the last 11 quarters," he wrote. Perkins also noted that Penney's has made "steady improvement" in terms of paring their losses since the Ron Johnson era. "They have had one flat quarter and one profitable quarter since the first quarter of 2012," he said.

But while rival department store chains like Macy’s and Kohl’s stumbled badly in recent quarters, both had a really good week this week, releasing earnings reports that impressed investors. Penney didn't join in the fun to quite the same extent. But Perkins said that the week's suprise positive department store results, capped off by Penney's, sets a positive tone for the slew of reports expected next week from the likes of Target, TJX, Home Depot, Wal-Mart, and others.

CEO Marvin Ellison kept his focus on the profit beat. "We are pleased with the sequential improvement we achieved throughout the second quarter, and our solid performance across all key metrics is encouraging,” he said in a statement. “We exceeded our profitability expectations, achieving an $85 million or 59% increase in EBITDA to $229 million for the quarter. We are continuing to win market share and improve the bottom line of our business thanks to the commitment and hard work of our over 100,000 associates.”

Ellison also said that the retailer will continue to roll out new Sephora concessions (a consistent source of success for the company), appliance sales, store revamps and expanded omnichannel initiatives.