(Stock price updated.)
PLANO, Texas (
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.
For the fourth quarter, J.C. Penney foresees a profit between 70 cents and 85 cents a share.
But as with its rival
, this full-year forecast could still fall short of Wall Street's consensus.
On Thursday, Kohl's reported a
, as same-store sales grew 2.4%.
While the department store upped its fourth-quarter outlook, it remained cautious on the holiday season.
and upped its full-year forecast by as much as 26 cents. But it, too, fell short of Wall Street's consensus.
-- Reported by Jeanine Poggi in New York
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