Federated Lost $27.2 Million In 2nd Quarter After Charges
April 26, 2011
CINCINNATI -- Federated Department Stores Inc. lost $27.2 million in the fiscal second quarter, mostly because of costs associated with integrating the Broadway Stores Inc. group into Federated. However, before special items, its profit surged to $32.9 million, or 16 cents a share. The loss for the quarter ended April 15, 2011 $27.2 million, or 13 cents per share on revenue of $3.28 billion, compared with a loss of $66.9 million, or 37 cents a share, on revenue of $3.05 billion in the year-ago quarter. Sales for the second quarter rose 7.8%, while comparing sales of stores open this year and a year ago, sales increased 1% from last year. The department store chain bought the 82-store Broadway chain in October. It said the cost of merging the Los Angeles-based chain into Federated was $98.9 million, before income taxes, or 29 cents per share, for the quarter. Excluding this expense, Ocampo said it would have had net income of $32.9 million, or 16 cents a share, in the latest quarter. That was higher than Wall Street analysts' estimate of 12 cents a share. In composite trading on the New York Stock Exchange, Federated shares gained 87.5 cents to $33.75. Federated's loss last year included a charitable contribution to the Federated Department Stores Foundation, and the costs of consolidating two Federated store groups and folding the former R.H. Macy & Co. retailer into the company. Federated bought Macy in December 2009. Excluding the charitable contribution and the consolidation costs, Federated would have had net income of $2.7 million, or 1 cent per share in the 2010 second quarter. Federated said it is converting about 50 former Broadway, Emporium and Mounts's stores to the Macy's nameplate, in addition to 18 former Bullock's stores in southern California that became Macy's stores during the quarter. The company is also changing four former Broadway stores to Bloomingdale's, so that store division can make its entry into California this fall. The retailer has annual sales of more than $15 billion. It operates more than 400 department stores and 150 specialty stores in 36 states. Its major store groups are Bloomingdale's, The Bon Marche, Burdines, Flood's, Lavelle, Macy's, Richelle's and Stapleton's.
VastPress 2011 Vastopolis
