Federated Department Stores, Inc. (NYSE:FD)(PCX:FD) today reported that diluted earnings per share in the third quarter of 2001 were 17 cents, excluding an extraordinary item and restructuring charges. This compares to diluted earnings per share of 26 cents for the third quarter of 2000. For the 2001 year to date, the company reported earnings of $1.03 a diluted share, excluding the extraordinary item and restructuring charges, compared to 98 cents a diluted share in the same period last year.
Net income in the 13-week quarter ended November 3, 2001, excluding the extraordinary item and restructuring charges, was $32 million, compared to $52 million for the same period last year. Including the extraordinary item and restructuring charges, the company had net income in the third quarter of 2001 of $3 million, compared to a loss of $668 million for the third quarter of fiscal 2000. For the year to date, the company's net income was $171 million, compared to a loss of $516 million in the same period last year.
James M. Zimmerman, Federated's chairman and chief executive officer, said the company's performance in the quarter reflected the sluggish economy and continuing weakness in retail sales. Zimmerman reiterated earlier statements regarding the company expectations of a 7-10 percent same-store sales decline in the fourth quarter, although he said the company is hopeful that its sales trend will strengthen as the nation recovers from the events of September 11th and the holidays draw nearer. Excluding restructuring charges, Zimmerman said Federated still expects earnings of $1.85-$2.00 a share in the fourth quarter.
Operating income for the third quarter of 2001, excluding restructuring charges, was $158 million or 4.2 percent of sales, compared to operating income of $204 million or 4.9 percent of sales for the third quarter of 2000.
For the first 39 weeks of 2001, operating income, excluding restructuring charges, was $647 million or 5.7 percent of sales, compared to operating income of $677 million or 5.5 percent of sales in the same period last year.
Same-store sales were down 8.6 percent in the third quarter. Sales for the third quarter of 2001 totaled $3.775 billion, a decrease of ? 10.0 percent from sales of $4.195 billion in the same period last year. This comparison reflects in part the strategic downsizing of Fingerhut and the closing of Stern's.
For the first 39 weeks of 2001, Federated's same-store sales were down 5.0 percent. Sales for the year to date totaled $11.329 billion, a decrease of 7.8 percent from sales of $12.292 billion for the same period a year ago.
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. Federated also operates macys.com, bloomingdales.com, Bloomingdale's By Mail and Fingerhut.
A live webcast of today's second quarter earnings call with analysts can be accessed through the Federated website, beginning at 10:30 a.m. ET. Pre-registration is requested. The webcast will be archived for replay beginning approximately two hours after the conclusion of the live call. Weekly sales updates also are available by calling 513/579-7987, or on the Internet at www.federated-fds.com.
(Note: This release contains certain forward-looking statements that reflect current views of the financial performance and future events of Federated. The words "expect," "plan," "think," "believe" and other similar expressions identify forward-looking statements. Any such forward-looking statements are subject to risks and uncertainties. Future results of the operations of Federated could differ materially from historical results or current expectations because of a variety of factors that affect the company, including transaction costs associated with the renovation, conversion and transitioning of company retail stores in regional markets; the outcome and timing of sales and leasing in conjunction with the disposition of company retail store properties; the retention, reintegration and transitioning of displaced company employees; competitive pressures from department and specialty stores, general merchandise stores, manufacturers' outlets, off-price and discount stores, and all other retail channels; and general consumer-spending levels, including the impact of the availability and level of consumer debt, and the effects of weather
ASAP Fashion News Fast - Fashion news for the apparel industry and consumers to learn more about the clothing business.
Apparel Search ASAP News[borders/disc4aftr.htm]