Federated quarterly profit rises

Cincinnati – Despite lower than expected fourth-quarter sales, Federated Department Stores exceeded profit and cash flow expectations, the company reported today.

In a conference call with analysts, cfo Karen Hogue said sales were above-plan at legacy Macy’s stores, while former May doors were weaker than expected. Hogue described Bloomingdale’s performance as “great.”

Federated is cautiously optimistic about meeting its 2007 goals, which depend heavily on converted May stores coming up to Macy’s performance levels. Hogue acknowledged that former May associates are still getting accustomed to Macy’s systems. She also described retaining May customers as “probably the most challenging of all the issues we face.”

The fall rollout of the exclusive Martha Stewart home collection this fall will increase the home department’s penetration as it will put Macy’s into some new product categories such as outdoor entertainment and holiday-specific food preparation.

Federated reported EPS from continuing operations of $1.45 for the quarter ended Feb. 3 vs. $1.22 in the year-ago period.

Sales totaled $9.159 billion, down 4.3 percent in part because Federated operates approximately 80 fewer stores than in last year’s fourth quarter. Comps rose 6.1%, but that figure does not include comps from the former May units. Comps from those doors will integrate into Federated results in the newly begun fiscal year.

Fiscal 2006 sales totaled $26.970 billion, up 20.5%, with a 4.4%bump in comps. Earnings per share for the year came in at $1.80 vs. $3.16 last year.Excluding costs related to the May merger and a gain on credit card receivables, EPS was $2.30.

Home & Textiles Today Staff | News & Commentary

 Home Textiles Today is the market-leading brand covering the home and textiles markets, offering a comprehensive package of print and online products. Home & Textiles Today provides industry news, product trends and introductions, exclusive industry research, consumer data, store operations solutions, trade show news and much more.

Featured Video

  • Live From New York: Fashion Comes Across the Pond

    Camera Icon More Videos

Subscribe to
Home & Textiles Today eDaily
Receive the news you need to know about the trends in the industry delivered right to your inbox.


HTT Cover October 2017

See the October 2017 issue of Home & Textiles Today. In this issue, we look at the Top 25 Online Retailers.  H&TT's exclusive annual ranking of the biggest online sellers of home textiles finds that while pure play etailers continue to fly, bricks & clicks are digging into omnichannel. See details!