Federated Department Stores, Inc. reported total sales of $809 million for the four weeks ended January 29, 2005, a decrease of 0.5% compared to total sales of $813 million in the same period last year. On a same-store basis, Federated’s January sales were down 0.4%, largely attributable to heavy snowfalls and ice storms in the eastern half of the country during the month.
For the fourth quarter of fiscal 2004, Federated’s sales totaled $5.07 billion, up 0.4% from total sales of $5.05 billion in the final 13 weeks of 2003. On a same-store basis, the company’s fourth quarter sales were up 0.8%.
For the full year, Federated’s sales totaled $15.630 billion, up 2.4 percent from total sales of $15.264 billion in the 52 weeks of fiscal 2003. On a same-store basis, Federated’s annual sales were up 2.6 percent.
Terry J. Lundgren, Federated’s chairman, president and chief executive officer, said the company’s sales performance for January was consistent with its prior guidance of same-store sales that were up 1 percent to down 1 percent, despite the effect of winter storms that kept shoppers away from the stores. The company estimated the storms had a negative 2 percent impact on January same-store sales.
Federated also said it now expects earnings to be in the upper range of its prior earnings guidance of $2.45 to $2.55 a share for the fourth quarter of fiscal 2004.
For fiscal 2005, Federated is anticipating same store and total sales increases of approximately 2 percent, with annual earnings in the range of $4.55 to $4.65 a share.
The company said same-store sales in the first half of the year are expected to be up about 1 percent on top of last year’s 5 percent increase over prior year performance. February’s same-store sales are expected to be flat to down slightly. In the second half of the year, a same-store sales increase of approximately 3 percent is anticipated. Total sales are expected to approximate same-store sales for the periods.
Federated is expecting to generate earnings of 45-50 cents a share in the first quarter of 2005, and 80-85 cents a share in the second quarter. For the second half of the fiscal year (the combined third and fourth quarters), the company said it is anticipating earnings per share of $3.20 to $3.30. Annual earnings per share are forecasted to be $4.55 to 4.65 a share.
