Federated Department Stores, Inc. October sales were $1.863 billion, a decrease of 7.9% compared to total sales of $2.023 billion in the same period last year. Total sales declined from October 2005 to October 2006, impacted by the closing of 78 duplicative store locations over the past year. On a same-store basis, Federated's sales for October were up 7.7%.
This exceeds the company's guidance for a same-store sales increase of 5 percent to 7 percent in October.
For the third quarter of 2006, the company's total sales were $5.888 billion, an increase of 6.0% compared to total sales of $5.555 billion in the same 13-week period last year. On a same-store basis, Federated's third-quarter sales were up 5.9%. The company's third quarter guidance was for total sales of between $5.9 billion and $6.1 billion, and for a same-store sales increase of between 3% and 5%.
For the year to date, Federated's sales totaled $17.813 billion, up 39.0% from total sales of $12.819 billion in the first 39 weeks of 2005. On a same-store basis, Federated's year-to-date sales were up 3.5%.
“Sales in October remained strong in legacy Macy's and Bloomingdale's stores, while former May Company locations continued to lag. Bloomingdale's successfully opened its new West Coast flagship in downtown San Francisco just prior to the beginning of the month,” said Terry J. Lundgren, Federated's chairman, president and chief executive officer. “We believe we have outstanding assortments in place for the holiday season, backed by a distinctive marketing campaign that will highlight the nationwide appeal of Macy's as a store for gifts.”
Federated expects same-store sales to increase by 3 percent to 5% in November, as well as in the fourth quarter as a whole. The company continues to expect total fourth quarter sales of $9.1 billion to $9.4 billion.
