Federated Department Stores, Inc. reported total sales of $1.349 billion for the five weeks ended October 2, 2004, a decrease in total sales of 0.2% compared to total sales of $1.352 billion in the same period last year. On a same-store basis, Federated's September sales were up 0.1%.
As previously noted, the company's September sales were negatively impacted by about $30 million as a result of Hurricanes Frances and Jeanne, which combined to reduce sales for the month by approximately 2 percent.
For the year to date, Federated's sales totaled $9.460 billion, up 3.3 percent from total sales of $9.154 billion in the first 35 weeks of 2003. On a same-store basis, Federated's year-to-date sales were up 3.4 percent.
Terry J. Lundgren, Federated's chairman, president and chief executive officer, said, “September sales showed modest improvement relative to August, although not enough to predict a robust October.”
He said the company was now anticipating October same-store sales to be up 2 to 3 percent, which would result in relatively flat same-store sales for the third quarter. The hurricanes are estimated to have reduced the third quarter sales by approximately 1 percent. Earnings for the third quarter are expected to be 30 to 32 cents a share, which is within the lower end of the company's prior guidance (35 to 40 cents a share, reduced by the 4 to 6 cents a share impact of the hurricanes).
For the fourth quarter, Federated continues to expect same-store sales to increase 1.5 to 3 percent, with earnings of $2.45 to $2.55 a share.
The company's revised annual earnings guidance, reflecting the impact of the hurricanes on the business, is now $3.65 to 3.75 a share. Prior guidance for the year was $3.70 to $3.80 a share.
