Federated Pushes Profits
November 15, 2004-- Home Textiles Today,
Cincinnati — Federated Department Stores boosted its third quarter net income by more than 10 percent, to $74 million.
Terry Lundgren, Federated's chairman, president and CEO, said the performance exceeded the company's expectations.
Federated's sales were just slightly better than break-even for the third quarter, and its operating income increased by a modest 1.2 percent. Same-store sales edged up 0.4 percent for the quarter. The bottom line benefited from a reduction in interest expense for the quarter of nearly 10 percent. Selling, general and administrative expenses fell 20 basis points during the period.
Net income and operating income achieved healthy gains for the first nine months of the year. Net income rose by more than 6 percent to $249 million, and operating profit jumped more than 9% to $637 million. Sales grew by more than 3 percent.
Federated said it expects a modest fourth quarter, at best. Same-store sales are expected to rise from 1.5 percent to 3 percent.
Federated Department Stores
|QTR. 10/30 (x1000)||2004||2003||% CHANGE|
|Earnings per share||0.42||0.36||16.7|
|Average gross margin||39.8%||40.0%||--|
|Earnings per share||1.38||1.25||10.4|
|Average gross margin||40.4%||40.1%||--|