Cincinnati, OH, February 22--Federated Department posted a quarterly profit at the high end of its expectations despite a slow start to the holiday shopping season.
The company reported earnings of $440 million, or $2.55 per share, for the fourth quarter. Analysts were expecting $2.54 per share.
In the year-earlier quarter, the company earned $460 million, or $2.50 per share, including a gain from a one-time tax adjustment equal to 21 cents a share.
While profit declined, earnings per share rose because of a decrease in shares outstanding.
Fourth-quarter sales rose 0.4 percent to $5.07 billion, while sales at stores open at least a year, or same-store sales, rose 0.8 percent. Analysts were expecting sales of $5.12 billion, according to Reuters Estimates.
Federated expects same-store sales for its current fiscal year to rise about 2 percent, with earnings per share of $4.55 to $4.65, Chairman, President and Chief Executive Terry Lundgren said in a statement.
Analysts, on average, expect $4.55 per share for the year, which ends in January 2006.
Federated did not comment on any merger plans in its earnings news release.
