By Randy Tucker
The Cincinnati Enquirer

Federated Department Stores blew away analysts' expectations Wednesday, posting first-quarter profits that more than doubled last year's results and raising sales and earnings expectations for the year.

The Cincinnati-based parent of Bloomingdale's and Lazarus-Macy's stores earned $96 million, or 52 cents a share, for the 12-week period that ended May 1, compared with earnings of $46 million, or 24 cents a share, in the comparable period a year ago.

Analysts, on average, had been expecting first-quarter earnings of 48 cents a share, which was at the high end of Federated's projections.

Federated shares closed Wednesday at $47.81, up $1.01.

Total sales for the quarter rose 6.9 percent to $3.52 billion, while sales at stores open at least a year - considered the best measure of a retailer's health - also rose 6.9 percent.

CEO Terry Lundgren, interviewed Wednesday morning on the cable news station CNBC, cited better merchandise selection and strong demand for new spring fashions for the improved results.

"I think the customer has clearly demonstrated ... she's back," Lundgren told CNBC's viewing audience.

Federated has consistently outperformed its peers over the past several months, including its leading competitor, May Department Stores, which saw sales decline 6.8 percent in April and reported a first-quarter profit increase of 5.6 percent - its smallest gain in three quarters.

Lundgren said Federated's focus on key strategies under its "reinvent" program also contributed to the company's stellar first-quarter performance. Those strategies include offering more private-label merchandise, simplifying pricing and renovating stores.

Federated now expects full-year earnings to range from $4.04 to $4.14 a share, excluding a one-time charge of $70 million to centralize its home-furnishings departments. That's up from a previous forecast of $3.90 to $4 a share.

Federated officials declined to comment on how the company's glowing financial results might impact its bid to acquire Marshall Field's department store chain from Minneapolis-based Target Corp.

E-mail rtucker@enquirer.com