Cincinnati, OH, August 10--Federated Department Stores said its earnings nearly doubled in its second quarter, and the company sees sales growth picking up in the second half of the year.
Net income for the quarter that ended July 30 rose to $148 million, or $0.84 per share, from $78 million, or $0.43 per share, a year ago when the company took a $59 million charge, or $0. 20 a share, to buy back $274 million of long-term debt.
The second-quarter 2005 numbers were in line with analysts' profit expectations, according to a Thomson Financial survey.
Sales of $3.62 billion were up 1.2 percent over sales of $3.58 billion last year. Sales at stores opened at least a year, considered a key indicator of a retailer's health, were up 1.1 percent.
Looking ahead, Federated said it expects same-store sales increases of about 3 percent in each of the third and fourth quarters. The company said its sales growth should pick up as it continues to make changes aimed at improving product assortments, pricing, the shopping experience and marketing.
The company doesn't plan to issue guidance on its third- or fourth-quarter earnings until after its acquisition of May Department Stores Co. closes, which is expected to occur in the third quarter.
For the first half of the year, Federated earned $271 million, or $1.56 per share, compared with $175 million, or $0. 96 cents per share, in the year-ago period.
Sales reached $7.26 billion, compared with $7.13 billion a year ago.
