J.C. Penney Inc. reported a smaller loss in the second quarter as the department store operator’s sales improved, fueled by such moves as bringing back appliances and refreshing other areas of the store.

Its shares slipped in morning trading Friday.

The news is encouraging, but Penney still faces an uphill climb as it continues to claw its way back after a catastrophic reinvention plan under former CEO Ron Johnson sent sales and profits into a free fall in 2012 and 2013. Business has stabilized, though it has yet to fully recover.

Under Marvin Ellison, who has been CEO since August 2015, Penney is looking for new ways to increase sales while playing catch up in e-commerce. One area that it’s betting on is appliances. Penney is getting back in the business after more than 30 years. Penney is also expanding its Sephora beauty shops and is updating its beauty salons now branded Salon by InStyle

Still, like other department stores, J.C. Penney faces big challenges. Shoppers are shifting their money away from clothing toward experiences like furnishing their home.