Struggling retailer J.C. Penney delivered quarterly revenue on Friday that topped expectations, but its stock fell sharply, as did many other department store chains.
Penney posted a fiscal third-quarter loss of 47 cents per share, narrowing the red ink from 77 cents a share in the year-earlier period. Revenue rose to $2.90 billion from $2.76 billion.
The company had been expected to report a loss of about 55 cents a share on revenue of $2.88 billion, according to a consensus estimate from Thomson Reuters.
J.C. Penney shares were down 11 percent midmorning Friday.
Nomura Research retail analyst Robert Drbul told CNBC's "Squawk Box" on Friday that the company is making "tremendous progress" in its turnaround efforts.
But like many of its competitors, he added, Penney is going into the fourth quarter with "elevated inventories," noting merchandise stockpiles were up 9.3 percent in the quarter.
Earlier this week, the company posted better-than-expected same-store sales growth for its third quarter. CEO Marvin Ellison said the quarter's gross margins and earnings performance "exceeded our expectations."
The retailer said comparable-store sales grew by 6.4 percent, while analysts polled by FactSet expected a 5.7 percent increase.