Cincinnati, OH, May 11--Federated Department Stores in the first quarter reported net earnings that were up 27 percent to $123 million. Earnings per share in the quarter at or $0.71 were up 34 percent.
Sales for the first quarter were $3.605 billion, an increase of 2.5 percent from sales from the same period last year. On a same-store basis, Federated's year-to-date sales were up 2.6 percent. The company opened no new stores in the first quarter of 2005.
Earnings per share in the quarter exceeded the company's initial guidance of $0.45-$0.50 and revised guidance of $0.65-$0.70.
"We obviously were very pleased with the quarter's results and our above-expectations sales performance, especially since these comparisons are against a strong first quarter last year," said Terry J. Lundgren, Federated's chairman, president and chief executive officer. "It demonstrates to us that focusing on sales is right for our business, and that our four key priorities - differentiated assortments, simplified pricing, an improved shopping experience and more effective marketing - are the right approach to making us a more attractive retailer."
Lundgren said the company's first quarter momentum is encouraging as Federated prepares to extend its priorities into May Co. stores following the merger of the two companies, which is expected to take place in the third quarter.
"We are more enthusiastic than ever before about the tremendous potential inherent in combining these two retail businesses, and eagerly await regulatory approvals so we may broadly communicate with May Co. employees to share the details of our exciting vision for the combined company," Lundgren said.
The company said it is expecting to generate earnings of $0.80-$0.85 per share in the second quarter, which ends July 30, 2005.
