Cincinnati, OH, May 10, 2006--Federated Department Stores Inc., reported a loss of $52 million, or $0.19 per share for the first quarter, verses a profit of $123 million, or $0.71 per share, in the same period of the prior year.
The company said it posted a loss of $0.27 per share from continuing operations for the quarter. Excluding merger integration costs and inventory valuation adjustments of $0.29 per share, it said its first-quarter earnings per share from continuing operations was $0.02.
Analysts were expecting the company to report earnings of $0.03 per share.
Terry Lundgren, Federated's chairman, president and chief executive officer, said, "Considering this was the initial quarter of physically bringing together the Federated and May Company organizations, we were very pleased with first quarter results that were ahead of our expectations. Performance was driven by stronger-than-expected same-store sales at Macy's and Bloomingdale's stores, as well as expense levels that were below plan. Our first quarter indicates that the integration of Federated and May Company continues solidly on track. We remained very focused and disciplined in running the business through this period.
"As we have said in the past, 2006 is a transition year for our company and each individual quarter has its own unique set of challenges and opportunities," Lundgren added. "We are encouraged by the success of our first credit and divisional systems conversions, with additional conversions planned through the second quarter. In addition, we will be working through merchandise conversions in the second quarter and early third quarter so a fresh new Macy's assortment is in place in all stores when more than 400 former May Company locations convert to the Macy's nameplate in September."
