Thursday, May 16, 2002

Federated first-quarter net income rises 53%


        Federated Department Stores said Wednesday its first-quarter net income rose 53 percent.

        The Cincinnati-based retailer, parent of Lazarus, Macy's and Bloomingdale's, posted net earnings of $89 million, or 43 cents a share, compared with $58 million, or 29 cents a share, during the same quarter in 2001. The year-ago quarter included $26 million in pretax charges for the closing of its Stern's division.

        “We've had a strong start to 2002, with first-quarter earnings and cash flow that significantly exceeded our original expectations,” James Zimmerman, Federated's chairman and chief executive, said. “We are hopeful that this strong start bodes well for our ability to meet expectations for the remainder of the year.”

        The shutdowns of Stern's and, more recently, Fingerhut, contributed to a 2.9-percent decline in first-quarter sales on both a total and same-store basis. For the 13 weeks ended May 4, Federated had $3.5 billion in sales, versus $3.6 billion in the year-ago period.

        Federated shares closed at $43.17, up 19 cents, in Wednesday trading.

— James McNair


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