Federated sales flat
US department store operator battling tough consumer market
November 14 2002
Federated Department Stores has reported flat sales for the third quarter, reflecting lower levels of consumer spending in the US.
The operator of store chains including Macy’s and Bloomingdales reported sales of $3.4bn for the third quarter of 2002, a similar figure to the same period last year. On a like-for-like basis, third quarter sales were down 2 per cent.
In the first 39 weeks of 2002, Federated sales totalled $10.4bn, a 1 per cent decrease on 2001, with like-for-likes down 2.6 per cent in the year to date.
Iincome from continuing operations totalled $75m for the quarter ended November 2, an increase of approximately 190 per cent over $26m in the same period last year. James M. Zimmerman, Federated’s chairman and chief executive officer, said the company’s third quarter earnings performance benefited from lower markdowns resulting from lower stock levels, as well as a drive to reduce expenses. Eight new stores opened in the in the third quarter.
Federated currently operates more than 460 stores in 34 states, Guam and Puerto Rico, under the Macy’s, Bloomingdale’s, The Bon Marche, Burdines, Goldsmiths, Lazarus and Rich’s brands.
