Cincinnati, OH, Dec. 4, 2002--Retailer Federated Department Stores Inc. today reported a 7.4 percent drop in November sales at stores open at least one year, and it forecast sales for the critical holiday period at the lower end of its expectations.
The owner of Macy's and Bloomingdale's stores said total sales reached $1.47 billion in the four weeks ended November 30, down 5.8% from the same period last year.
"It is difficult to forecast December sales on the basis of what we have seen in November because while Thanksgiving weekend was strong, sales earlier in the month were weaker than expected," James Zimmerman, chairman and chief executive officer, said in a statement.
"Therefore at this point we are anticipating sales at the lower end of our expectations for the combined November-December holiday period," he said.
Federated, which operates more than 460 stores, said last week its sales were "disappointing" in the third week of November, but it stood by its forecast that same-store sales would be flat to down 2.5 percent for the combined November-December period ending Jan. 4.
Analysts are widely predicting lackluster holiday sales this year as a sluggish economy and the threat of war with Iraq crimp consumer confidence and restrain spending. However, Federated and several other retailers posted better-than-expected results over Thanksgiving weekend, the traditional start to the holiday shopping period.
The fourth quarter, which includes the important holiday season, is expected to generate some 42 percent of Federated's full-year profit, based on the consensus earnings estimate of analysts polled by research firm Thomson First Call.
