Federated Department Stores, Inc. saw sales increase 64.8% to $2.367 billion for the month of June compared to sales of $1.436 billion in the same period last year, which does not include sales from the acquired May Company stores. On a same-store basis, Federated’s sales for June were up 1.7%, but slightly below the company’s guidance for a same-store sales increase of 2% to 3% in June.
For the first 22 weeks of fiscal 2006, Federated’s sales totaled $10.321 billion, up 64.7% from total sales of $6.266 billion in the first 22 weeks of 2005. On a same-store basis, Federated’s year-to-date sales were up 2.1%.
Federated expects same-store sales to increase by 3% to 4% in July and at the lower end of the previously announced range of 4% to 6% in the second quarter. The company continues to expect total sales of $6 billion to $6.25 billion in the second quarter. The company’s earnings guidance remains unchanged. On a post-split basis (Federated shares split two-for-one effective after close of trading on June 9, 2006) including the previously announced tax settlement, Federated’s guidance is for earnings per diluted share excluding one-time merger integration and inventory valuation costs and gain on sale of credit receivables of 39 cents to 44 cents in the second quarter of 2006, $1.50 to $1.62 in the third and fourth quarters combined, and $1.91 to $2.04 for the year as a whole.
Federated’s total sales for June and 2006 year-to-date include the May Company acquisition, which was completed Aug. 30, 2005. Federated’s same-store sales include only Macy’s and Bloomingdale’s locations. Excluded from Federated total sales are 75 duplicate stores where clearance sales are in progress or completed. Also excluded are the Lord & Taylor and Bridal Group divisions, which the company intends to divest and are being treated as discontinued operations.