J.C. Penney Sells More at Full Price

(Stock price updated.)

PLANO, Texas (TheStreet) -- J.C. Penney(JCP Quote) reported a 78% plunge in third-quarter profit, missing expectations by a penny.

But the department store still upped its 2009 outlook, as it sells more merchandise at full-price, a good sign for the holiday season.

As a result, shares are increasing 6.6% to $31.26 in early trading.

During the quarter, the department store earned $27 million, or 11 cents a share, compared with $124 million, or 56 cents, in the year-ago period. Analysts expected the company to earn 12 cents a share.

J.C. Penney said it was weighed down by expenses to fund its pension plan.

Sales slipped 3.2% to $4.18 billion, while same-store sales

The company now expects full-year earnings in the range of 93 cents to $1.08 a share, up from prior guidance of 90 cents. Analysts predict the company will earn $1.05 for the year.