Federated Department Stores, Inc. (NYSE:FD) today reported a 12.9 percent decrease in comparable-store sales for the five weeks ended October 6, 2001, reflecting the aftermath of the September 11th terrorist attacks and the slowdown in the economy.
Total September sales of $1.396 billion represent a decrease of ? 14.5 percent from sales of $1.632 billion for the same period last year.
For the first 35 weeks of 2001, Federated's same-store sales were down 4.5 percent. Year-to-date sales totaled $10.153 billion, a decrease of 7.7 percent compared to sales of $11.002 billion for the same 35-week period last year.
The company said comp-store sales improved relative to plan in the latter part of September, running approximately 5-7 percent below plan by month's end. Previous estimates were for September same- store sales declines of 15-20 percent. Sales in the company's two Manhattan flagship stores -- Macy's Herald Square and Bloomingdale's 59th Street -- also improved during the month, although they still significantly trailed the company's overall sales trend. Excluding these stores, Federated said its September comp-sales would have been about one point better than reported.
While it remains difficult to forecast sales in the current environment, Federated said its best estimate is that October's same-store sales will be 7-10 percent below last year. The earnings impact of the lower-than-expected sales on the third and fourth quarters still is being evaluated, and revised earnings guidance will be issued when that assessment is completed.
Federated, with corporate offices in Cincinnati and New York, is one of the nation's leading department store retailers, with annual sales of more than $18.4 billion. Federated currently operates more than 450 stores in 34 states, Puerto Rico and Guam under the names of Bloomingdale's, The Bon Marche, Burdines, Goldsmith's, Lazarus, Liberty House, Macy's and Rich's, as well as macys.com, bloomingdales.com, Bloomingdale's By Mail and Fingerhut.