Cincinnati, OH, May 12--Federated Department Stores reported better-than-expected quarterly earnings as it sold more full-priced spring clothing and kept costs in check, and raised its forecasts for the rest of the year.
The parent of Bloomingdale's and Macy's stores said it earned $96 million, or 52 cents per share for the first quarter ended May 1, compared with $46 million, or 24 cents per share for the same period a year ago.
Analysts, on average, expected earnings of 48 cents per share, according to Reuters Research, a unit of Reuters Group Plc. That was the high end of the company's increased forecast for 45 cents to 48 cents per share.
Quarterly sales rose 6.9 percent to $3.52 billion, while sales at stores open at least a year--a key retail measure known as same-store sales--also rose 6.9 percent.
The retailer credited an improving U.S. economy and better merchandise for the sales growth. Many U.S. retailers reported strong demand for spring fashions in the latest quarter and said customers were willing to pay full price.
A year ago, retailers cut prices to clear out heavy inventories as a sluggish economy, uncooperative weather and worries about war in Iraq curbed demand.
Federated said it expects the strong quarterly performance to continue for the rest of the year, and raised its sales and earnings forecasts for the rest of the year.
The company now expects full-year earnings, excluding one-time costs, in the range of $4.04 to $4.14 per share, above its already increased forecast for $3.90 to $4.00 a share. Analysts, on average, expected a full-year profit of $4.10 per share, according to Reuters Research.
