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Friday, May 7, 2004

Federated growth exceeds industry's



By Randy Tucker
The Cincinnati Enquirer

Federated Department Stores saw higher April sales fueled by strong spending on women's clothing and accessories, the company said today

Sales at stores open at least a year - known as same-store sales and considered the best indicator of a retailer's health - rose 5.4 percent.

That was more than a percentage point higher than the national average for chain-store operators, who collectively posted a 4.3 percent gain in same-store sales, according to Thomson First Call, which had been expecting an overall increase of 4.9 percent for the sector.

The Cincinnati-based parent of Bloomingdale's, Macy's and Lazarus-Macy's reported total April sales of $1.13 billion, up 5.5 percent from total sales of $1.08 billion in the same period last year and beating expectations by about a half a percentage point.

In addition to women's clothes and accessories, Federated attributed much of the sales growth to its focus on key strategies under its "reinvent'' program.

Those strategies include offering more private-label merchandise, simplifying pricing and renovating stores with amenities that make the shopping experience more pleasant and convenient.

"I believe a consistent and effective focus on these key priorities is responsible in large part for the stronger sales we are seeing across the company," CEO Terry Lundgren said.

April sales continued the trend of increases in same-store sales in each of the past four months.

Lundgren said Federated expects May same-store sales to be flat, reflecting a shift of sales into June because of a later Memorial Day weekend this year compared to 2003.

The company is to report its first-quarter earnings on Wednesday. Shares in Federated closed at $47.59, down $1.41.

E-mail rtucker@enquirer.com




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