Remote Name: 184.108.40.206
Federated Department Stores, Inc. (NYSE:FD)(PCX:FD) today reported net income of $110 million for the second quarter of 2001, an increase of 72 percent over net income of $63 million for the same period last year.
Federated's diluted earnings per share in the second quarter of 2001 were 43 cents, excluding restructuring charges related to the closing of its Stern's department store division and the integration of the newly acquired Liberty House stores into Macy's West. This compares to diluted earnings per share of 30 cents for the second quarter of 2000, which was impacted by escalating credit delinquencies at Fingerhut.
For the first half of 2001, Federated's net income was $168 million compared to $152 million for the first 26 weeks of fiscal 2000. On an earnings-per-share basis, the company reported earnings of 86 cents a diluted share, excluding restructuring charges, compared to 72 cents a diluted share 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 the company's comp-sales guidance of minus 1- 2 percent for the fall season, and said that in light of the continuing difficult sales environment, earnings for the full year, excluding restructuring charges, now are expected to be in the range of $3.60 to $3.80 a share (50-60 cents a share in the third quarter and $2.20-$2.35 a share in the fourth quarter). This narrows the company's previous guidance of $3.60 to $3.90 a share, the higher end of which does not appear achievable in the current economic climate.
Operating income for the second quarter of 2001, excluding restructuring charges, was $246 million or 6.6 percent of sales, up 11.9 percent over operating income of $220 million or 5.4 percent of sales for the second quarter of 2000.
For the first half of 2001, operating income excluding restructuring charges was $489 million or 6.5 percent of sales, an increase of 3.5 percent over operating income of $473 million or 5.8 percent of sales in the same period last year.
Sales for the second quarter of 2001 totaled $3.732 billion, a decrease of 8.2 percent from total sales of $4.065 billion in the same period last year. This comparison reflects in part the strategic downsizing of Fingerhut and the closing of Stern's. On a comparable-store basis, sales were down 4.8 percent in the second quarter.
For the first 26 weeks of 2001, sales totaled $7.554 billion, a decrease of 6.7 percent from sales of $8.097 billion for the same period a year ago. On a comparable-store basis, sales for the first half of this year decreased 3.1 percent.
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)
Thank you for taking the time to read this fashion industry news on the Apparel Search website.
ASAP Fashion News Fast - Fashion news for the apparel industry
and consumers to learn more about the clothing business. Apparel Search
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]