Cincinnati, OH, Mar.4--Federated Department Stores Inc, parent of Macy's and Bloomingdale's, on Thursday reported a better-than-expected 9 percent jump in February sales at stores open at least a year and raised its first-quarter earnings forecast.
Federated said total sales for the four-week period ended Feb. 28 were $1.07 billion, up 8.8 percent from a year earlier.
On Feb. 24, the company increased its same-store sales view for February to between a 7 percent to 8 percent rise, from 2 percent to 3 percent growth.
Chairman and Chief Executive Terry Lundgren credited February's sales performance to favorable weather compared with a year ago, and strength in key merchandise such as women's ready-to-wear, jewelry, handbags, shoes and cosmetics. The trends bode well for spring, but he added that the company is still cautious about its home store sales trend, due partly to the reorganization in that segment.
Federated said it boosted its first-quarter earnings per share outlook to between 35 cents and 40 cents, driven by same-store sales growth of 4.5 percent to 6 percent. It previously expected earnings would be relatively flat with 24 cents posted a year ago.
The view tops analysts' average estimate of 30 cents per share, according to Reuters Research, a unit of Reuters Group PLC.
Federated said, however, that if the underlying sales trend continues, it could exceed its 2.5 percent to 3 percent growth plan for March and April, resulting in a first-quarter same-store sales rise of 5.5 percent to 6 percent.
It left its same-store sales guidance for the rest of the year unchanged. It sees second-quarter same-store sales increasing 1 percent to 1.5 percent, and 1.5 percent to 2 percent in the second half of the year.
The company, which operates more than 450 stores, also now estimates its full-year profit to range from $3.80 to $3.90 per share, compared with $3.70 to $3.80 previously.
