Federated Department Stores, Inc. total sales for January – the five-week month ended Feb. 3, 2007 – were $1.780 billion, an increase of 19.0% over total sales of $1.495 billion for the four weeks ended Jan. 28, 2006. Total sales from January 2006 to January 2007 were impacted by the closing of 78 duplicative store locations over the past year.
On a same-store, comparable four-week basis, Federated's January sales were up 8.6%. This compares with guidance for same-store sales to increase by 1.5% to 3%.
For the 14-week fourth quarter of fiscal 2006, Federated's sales totaled $9.157 billion, down 4.3 percent from total sales of $9.571 billion in the final 13 weeks of 2005. This compares with guidance for total sales to be between $9.1 billion and $9.4 billion in the fourth quarter of 2006. On a same-store basis, the company's fourth quarter sales were up 6.1 percent.
The company's total sales for the 53 weeks of fiscal 2006 were $26.968 billion, up 20.4 percent from total sales of $22.390 billion in the 52 weeks of fiscal 2005. On a same-store basis, Federated's annual sales were up 4.4 percent.
The company increased its guidance for earnings from continuing operations for the fourth quarter of fiscal 2006. Excluding merger integration costs and related inventory valuation adjustments, the company now expects fourth quarter earnings from continuing operations of $1.55 to $1.60 per share, compared with previous guidance of $1.40 to $1.50 per share. The revised guidance includes a one-time gain of 6 cents per share related to completion of its debt tender offer, as announced in December 2006.
“January represented a strong finish to our fiscal year, with an outstanding performance in legacy Macy's and Bloomingdale's stores, as well as continued improvement in sales trends at former May Company locations,” said Terry J. Lundgren, Federated's chairman, president and chief executive officer. “Sales were stimulated in part by redemption of gift cards sold during the holiday season and the arrival of cold weather in much of the country.”
“All in all, 2006 was a great year in which we transformed our company and embraced an extraordinary amount of positive change while exceeding our initial earnings targets,” Lundgren said. “This is a testament to the strategy we have put in place and to the strength of our organization. We look forward to this momentum carrying into 2007.”
Federated expects same-store sales to increase by 2 percent to 3 percent in February. Beginning in February, Federated's same-store sales will include former May Company locations, as well as legacy Macy's and Bloomingdale's stores, that have been open for more than one full fiscal year.
