RAPAPORT... J.C. Penney and Macy's noted strong sales in their jewelrydivisions in the second fiscal quarter, even as overall results were disappointing."Our fine-jewelry business continues to deliver strong salesresults," J.C. Penney chief financialofficer Bill Wafford said last week on an analyst call transcribed by SeekingAlpha. Comparative-store sales for the division increased, he added. "We saw strength in categories such as modern bride, gold, diamondsand fashion gems. Our teams have been working closely with our vendors bringingin newness in diamonds and fashion gems." The company is also offering special deals and prices tocontinue to appeal to consumers and drive value in the division, J.C.Penney noted. Jewelry also proved to be one of the best-sellingcategories at Macy's. Sales at the company's six "destination" businesses, the primary points of entry for its brand, rose 5% for the quarter, accounting for nearly 40% of total sales. Fine jewelry, men's tailored and women's shoes recorded the strongest performances of those businesses, Macy's CEO Jeff Gennette said on the company's analyst call.Both companies also expressed intentions to invest furtherin improving their jewelry divisions to drive store growth and increase traffic and sales."All six [key divisions] continue to outperform thebalance of the business on market share, return on investment andprofitability, and we are putting additional resources behind these sixcategories to drive growth," Gennette explained. "These destinations are thepoint of entry to the Macy's brand, and we see significant opportunity to drivecross-shopping." J.C. Penney will also introduce a "styling room" that will showcase top-selling items such as jewelry in an effort to attract customers. The space will be located next to the women's-apparel department in its stores, and will include digital billboards and mannequins featuring "fresh andtrend-right merchandise," Wafford added. Both companies have also announced plans to capitalize onthe secondhand luxury fashion trend. J.C. Penney will partner with ThredUP, afashion resale marketplace, in 30 of its stores, while Macy's will feature thesame vendor in 40 of its locations. The retailers initially plan to offerclothing items and accessories through the service. Macy's revenue slid 0.5% to $5.55 billion in the secondfiscal quarter, which ended August 3, while sales at J.C. Penney dropped 9% to $2.51 billion for the same period. Image: A J.C. Penney store in Viriginia. (Ser Armantio di Nicolao)