The stock price of J.C. Penney Company, Inc. (NYSE:JCP) surged 5% to as much as $10.62 per share in after-hours trading on Tuesday after the embattled department store chain reported that its same store sales increased by 10% in November.

J.C. Penney

The company also reported that its online sales through jcp.com remained strong, surpassing its sales performance last year and consistent with the trend last month.

J.C. Penney enjoyed strong Black Friday weekend results

In a statement, Mike Ullman, chief executive officer of J.C. Penney Company, Inc. (NYSE:JCP) said, “We are pleased with our performance over the Thanksgiving holiday weekend, particularly in light of the continued spending pressures on consumers. The combination of our great merchandise and compelling promotions put us in a position to succeed in a highly competitive environment, and our teams executed very well.”

Ullman added that the management team of J.C. Penney Company, Inc. (NYSE:JCP) is excited with the traffic and conversion both in stores and online during the weekend. The company also recognized the fact that the industry will remain competitive and its management team is working to maintain the momentum during the entire holiday season.

J.C. Penney Company, Inc. (NYSE:JCP) also mentioned the early performance of its giftable items is encouraging based on sales trends through the weekend. The company furthermore noted that customers were taking advantage of its gift buying promotions

Analysts encouraged

Analysts at RW Baird were encouraged by the same store sales performance of J.C. Penney Company, Inc. (NYSE:JCP) and raised their price target for the shares of the company to $11 per share. The firm maintained its neutral rating for the stock, but indicated that its conviction on the stock might become more constructive if the company continues to record improvements and ease liquidity concerns.

InfoScout, a research firm that tracks the spending of 50,000 shoppers on Black Friday reported that J.C. Penney Company, Inc. (NYSE:JCP) recorded a 13% market share on Thursday and Friday, up from its normal market share of around 11%. Data from the research firm also indicated that its sales gap with Macy’s, Inc. (NYSE:M) decreased.

Last month, J.C. Penney Company, Inc. (NYSE:JCP) was removed from S&P 500 Index. The primary reason was the declining market value of the retailer.  Its current market value is around $3 billion. Over the past 52-week range, the stock price of the retailer dropped from its peak of $23.10 to its current trading price of around $10 a share.