|
Federated profit jumps 60 %
|
 |
August 12, 1998: 11:57 a.m. ET
2Q earnings beat estimates by 16 cents a share; revenue up 2 % in period
|
NEW YORK (CNNfn) - Federated Department Stores posted a 60 percent jump in second-quarter profits, walloping Wall Street estimates by 16 cents per share.
The Cincinnati-based owner of Bloomingdale's, Macy's and Burdine's, among others, reported net income of $107 million, or 47 cents per diluted share, for the three months ended in June.
Analysts expected Federated to earn 31 cents per share.
In the year-ago period, Federated earned $28 million, or 13 cents a share.
Revenues during the latest quarter grew 2 percent to $3.5 million. On a comparable-store basis, sales were up 3 percent.
"We've had good customer response to the merchandise assortments in our stores this quarter, which can be attributed at least partially to an improved merchandise receipt flow," said Federated's Chairman and Chief Executive James M. Zimmerman. "As a result, we experienced both stronger sales and margins and we are very pleased with our performance."
During the quarter, Federated wrapped up the previously announced sale of its specialty stores division, which operates Aeropostale and Chelsea Cambell stores, to the division's management group. Terms of the deal weren't disclosed.
In June, the company announced it will launch macys.com, the two-year-old Internet counterpart to America's best-known retailer, as a free-standing subsidiary dedicated to creating "a true cyber-shopping experience."
The Web site will offer more than 250,000 items for online purchase through the direct mail catalog beginning in October.
For the first half , Federated posted net income of $167 million, or 74 cents a share, compared with $52 million, or 24 cents per share, a year earlier.
Federated, one of the nation's largest department store retailers, has annual sales of more than $15.6 billion. The company operates 400 department stores nationally under the names Bloomingdale's, The Bon Marche, Burdines, Goldsmith's, Lazarus, Macy's, Rich's and Stern's.
Shares of Federated (FD) were up 6/16 at 50-13/16 in early trading on the New York Stock Exchange. 
|
|
|
|
|
|
Federated
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
