Federated Department Stores, Inc. provided preliminary earnings guidance for fiscal 2003, which will be further refined with the conclusion of fiscal 2002 and when year-end earnings are released on February 25.
In summary, Federated is forecasting both sales and earnings per share (EPS) to be essentially flat in 2003 compared to 2002. The company said that free cash flow will continue to be significant, however, providing numerous options for returning value to shareholders.
While ranges on sales and earnings will be more useful after year-end closing, preliminary guidance is as follows:
Full Year 2003 1Q 2003 2Q 2003 3/4Q 2003 ---------- --------------- ------------- --------------- ------------- Same-store sales -1.5% to flat -2% to -3% -1% to -2% -1% to +1% ---------- --------------- ------------- --------------- ------------- Diluted EPS $3.00 to $3.20 14 to 19 cents 55 to 60 cents $2.39 to $2.49 ---------- -------------- -------------- --------------- ------------- One-time costs $45 million $35 million $5 million $5 million ---------- --------------- ------------- --------------- ------------- Diluted EPS excluding one-time costs $3.15 to $3.35 24 to 29 cents 56 to 61 cents $2.40 to $2.50 ---------- -------------- -------------- --------------- -------------
Federated also has budgeted capital expenditures at $650 million for 2003.
The one-time costs estimate of $45 million, together with the estimate of $70 million in one-time costs in fiscal 2002 (total of $115 million) are associated with the consolidation of Rich’s-Macy’s stores in Atlanta, as well as other miscellaneous closings.
