Federated hits earnings targets
New CEO appointed at US department store group
February 25 2003
Federated Department Stores has reported fourth quarter and full year results for the year ended February 1 in line with company forecasts.
Federated, which has struggled to maintain sales in the downbeat US economy saw profit for the 13-week fourth quarter of $341m, compared to $310m in the same period last year. For the full year, profit was $638m compared to $518m in 2001.
Total sales for the year were $15.435 bn, a decrease of 1.4 per cent compared to 2001, with same-store annual sales down 3 per cent. Over the year, Federated closed 19 stores and opened 15.
James M. Zimmerman, Federated’s chairman and chief executive officer said: “Achieving improved earnings despite a soft retail environment is evidence of exceptional efforts on the part of our stores and division management during the past year. It also reflects the strength of our private brands merchandising programme, which has proven to be a true differentiator for Federated through the creative vision and leadership of the company’s president and COO, Terry Lundgren.”
Lundgren has been elected to succeed Zimmerman as Federated’s chief executive officer, with Zimmerman remaining as chairman of the company. Lundgren will assume the new title of president and chief executive officer.
Federated is forecasting that same-store sales will be at least flat in the quarter to the end of April, with the possibility of a decline of up to 1.5 per cent. The sales decline is expected to continue to decline through the year.
Twelve stores are scheduled to open in the coming year, including a Bloomingdale’s in the SoHo area of New York City. Federated currently operates more than 450 stores under the Macy’s, Bloomingdale’s, The Bon Marche, Burdines, Goldsmith’s, Lazarus and Rich’s-Macy’s brands.
