Federated Department Stores, Inc. reported comparable-store sales for the month of October slipped 0.7%. Total sales were $2.138 billion, an increase of 92.9% compared to total sales of $1.108 billion in the same period last year.
For the third quarter of 2005, the company's total sales were $5.786 billion, an increase of 64.2% compared to total sales of $3.525 billion in the same 13-week period last year. On a same-store basis, Federated's third-quarter sales were up 0.6%.
For the year to date, Federated's sales totaled $13.050 billion, up 22.5% from total sales of $10.656 billion in the first 39 weeks of 2004. On a same-store basis, Federated's year-to-date sales were up 1.4%.
Federated's total September and October sales include the May Company acquisition, which was completed Aug. 30, 2005. Same-store sales include only Macy's and Bloomingdale's locations open for more than one full fiscal year. Sales from the company's Bridal Group division, which the company intends to divest and is being treated as a discontinued operation, are excluded from Federated total September and October sales.
“Sales in October were negatively impacted by the effects of Hurricane Wilma, which caused significant damage and widespread power outages in Florida. In all, 36 Macy's and five Bloomingdale's stores were closed for varying periods of time during October. These store closures accounted for the loss of approximately 1.7% in Federated comp store sales in October and approximately 0.5% in the third quarter,” said Terry J. Lundgren, Federated chairman, president and chief executive officer. “Three Macy's Florida stores – Plantation, Sunrise Galleria in Ft. Lauderdale and The Falls in Miami – incurred substantial damage and are likely to remain closed through the holiday season. In addition, two Macy's East stores in New Orleans remain closed after Hurricane Katrina.
“We are cautiously optimistic for the fourth quarter, with same-store sales expected to increase by 1% to 2% over last year,” Lundgren said. “We have an exciting merchandise assortment and marketing campaign planned for the holiday season, which we believe will attract customers to our stores, despite the pressure they feel from economic uncertainty and coming increases in home heating costs.”