Federated Department Stores reported total sales of $1.316 billion for the five weeks ended April 3, 2004, an increase in total sales of 6.8 percent compared to total sales of $1.232 billion in the same period last year. On a same-store basis, Federated's March sales also were up 6.8 percent.
For the year to date, Federated's sales totaled $2.385 billion, up 7.6 percent from total sales of $2.216 billion in the first nine weeks of 2003. On a same-store basis, Federated's year-to-date sales were up 7.7 percent.
Terry J. Lundgren, Federated's chairman, president and chief executive officer, said the company was very pleased with the strength of its March sales, reflecting continued strength in career apparel and accessories.
Looking ahead, Lundgren said April's sales are expected to continue strong, resulting in a first quarter same-store sales increase of 6-7 percent. Because of these stronger-than-anticipated sales, Lundgren said Federated is raising its first quarter earnings guidance to 45-48 cents a share on a diluted basis compared to prior guidance of 35-40 cents a share. The company is also raising its annual earnings guidance to $3.90 – $4.00 a diluted share, exclusive of any one-time costs associated with the home store reorganization.
Lundgren said that although same-store sales in the second quarter will begin to be compared to strengthening sales from the prior year, Federated is raising its sales guidance for this year's second quarter to reflect current sales trends. A same-store sales increase of 2-3 percent is now anticipated for the period, up from prior guidance for the second quarter of a 1-1.5 percent. No changes are being made in Federated's guidance of a 1.5-2 percent same-store sales increase for the fall season.
