Department store operator J.C. Penney reported a 2.7 percent rise in quarterly revenue, helped by higher sales in its home and fine jewelry categories and at the Sephora departments in its stores.
The company's net loss narrowed to $138 million, or 45 cents per share, in the second quarter ended Aug. 1, from $172 million, or 56 cents per share, a year earlier.
J.C. Penney's revenue rose to $2.88 billion from $2.80 billion.
Shares popped 8 percent around 10:30 a.m. ET on the news.
Topeka Capital Markets retail analyst, Dorothy Lakner, told CNBC's "Squawk on the Street" Friday that "clearly with J.C. Penney's, it's a turnaround story."
—CNBC's Reem Nasr contributed to this report.