Cincinnati, OH, Feb. 3--Federated Department Stores Inc., parent of Macy's and Bloomingdale's, on Tuesday reported a 5.5 percent jump in January sales at stores open at least a year, and raised its fourth-quarter earnings forecast.
The firm said total sales for the four-week period ended Jan. 31 were $814 million, up 5.1 percent from a year earlier.
The company in a statement said it saw improvement across all merchandise categories and in all parts of the country, driven by a comeback in career apparel and accessories.
The company, which operates more than 450 stores in 34 states, said it expects 2004 same-store sales to increase 1.5 percent to 2 percent.
Federated now expects fourth-quarter earnings of $2.25 to $2.27 per share, excluding a tax-related gain, above a forecast it gave in November of $2.15 to $2.20 per share.
The company also said it would create a new organization responsible for overall strategy, merchandising and marketing of home-related categories of business in more than 425 stores carrying the Macy's nameplate. In 2003, home categories--including textiles, tabletop and housewares--represented some $2.6 billion in annual sales for Federated.
The company said it expects to incur unspecified "transition costs" in the move to centralize the home areas of the business but added that it would have no estimate of the cost or any ongoing savings for at least 90 days.
The company said it would determine over the next several months how many positions will be eliminated due to the reorganization, which Federated said should have no material impact on 2004 earnings.
