Federated cautions Wall Street
July 5, 2001-- Home Textiles Today,
Cincinnati — With sales and profits both under heavy pressure in a prolonged slump for the nation's department stores, Federated Department Stores Inc. hoisted a yellow caution flag last week, warning Wall Street and investors that second-quarter profits will come in 33 to 43 percent beneath earlier expectations.
And same-store sales will record a decline of 1 percent to 2 percent, falling short of an earlier forecast that had comps running flat to up to 1 percent.
Slammed by the falling sales, Federated said earnings per share are now expected to come in between 40 cents and 50 cents a share, sharply beneath an earlier forecast of 70 cents to 75 cents.