Federated Department Stores, Inc. provided earnings guidance for the fourth quarter of 2001 and fiscal 2002 for continuing operations reflecting the classification of Fingerhut as discontinued operations.
Consistent with recent guidance for the department stores, Federated expects to produce diluted earnings per share (EPS) from continuing operations of $1.80 to $1.90 in the fourth quarter of 2001, excluding restructuring charges.
The company said it expects that the current challenging economic climate will continue during the first half of the year. Therefore, Federated said it is projecting a same-store sales increase of 1.0 to 1.5 percent for the full year 2002, with the first quarter down 2-3 percent, the second quarter flat and the second half of 2002 up 3-3.5 percent. The company also said it expects to open 10 new department stores and two new home stores in 2002.
Given these assumptions, Federated expects annual EPS from continuing operations of $3.25 to $3.50 in fiscal 2002, which ends February 1, 2003. Although plans still are being finalized, current expectations are for EPS of 25-30 cents in the first quarter, 50-60 cents in the second quarter and $2.40 to $2.60 in the second half of the fiscal year.
There will be a conference call with analysts beginning at 9 a.m. ET Thursday, January 17th to discuss Federated's fiscal 2002 earnings guidance, as well as the company's intent to dispose of the operations of its Fingerhut subsidiary, which was announced today in a separate news release. The public can access the call through the Federated website, but 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 at www.federated-fds.com.
Federated, with corporate offices in Cincinnati and New York, is one of the nation's leading department store retailers, with annual sales from continuing operations of more than $15.5 billion. Federated currently operates more than 450 stores in 34 states, Guam and Puerto Rico, under the names of Macy's, Bloomingdale's, The Bon Marche, Burdines, Goldsmith's, Lazarus and Rich's, as well as macys.com and Bloomingdale's By Mail.
(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.)
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