Federated Warns of Earnings Shortfall, Cites Franc
Cincinnati, OH, September 8--Federated Department Stores said that Hurricane Frances is responsible for a shortfall in sales, and with it earnings, for the third quarter.
The parent of Bloomingdale's and Macy's chains, among others, warned investors that an early tally of the hurricane's impact on the company's Florida stores amounted to $20 million in lost sales and about 3 cents to 4 cents in earnings per share. Same-store sales for September were also reduced, by 1.5 percent.
The company said it didn't believe any of the Florida stores in Frances's path sustained any structural damage. They gradually reopened through the weekend, and the company expects that only a handful of stores will stay closed because of power outages.
Federated also said it will take "several weeks" before a final assessment of sales damage can be determined.
