Federated Department Stores, Inc. saw September sales total $2.303 billion, a 6.5% decrease from $2.464 billion during the same month last year. Total sales declined from September 2005 to September 2006, impacted by the divestiture or clearance of 78 duplicative store locations over the past year. On a same-store basis, Federated's sales for September were up 6.2%. This exceeds the company's guidance for a same-store sales increase of 3% to 5% in September.

For the year to date, Federated's sales totaled $15.952 billion, up 47.8% from total sales of $10.796 billion in the first 35 weeks of 2005. On a same-store basis, Federated's year-to-date sales were up 3.0%.

“Customers responded positively to the nationwide re-launch of the Macy’s brand in September,” said Terry J. Lundgren, Federated’s chairman, president and chief executive officer. “Increased national marketing support led to better-than-expected results in our ongoing Macy’s stores. In addition, sales trends improved in the former May Company locations.”

Federated expects same-store sales to increase by 5% to 7% in October. The company continues to expect total third quarter sales of $5.9 billion to $6.1 billion.

Federated's same-store sales include only legacy Macy's and Bloomingdale's locations (those operating as Macy’s or Bloomingdale’s prior to September 2006). Federated's total sales for September 2006 and September 2005 include the May Company acquisition, which was completed Aug. 30, 2005. Total sales for January through August include former May Company locations in 2006 but not in 2005. Excluded from September and year-to-date sales in 2006 and 2005 were the Lord & Taylor and Bridal Group divisions, which are being divested by the company and therefore are being treated as discontinued operations.

Federated, with corporate offices in Cincinnati and New York, is one of the nation's premier retailers, with fiscal 2006 sales expected to be more than $27 billion. Federated operates more than 850 department stores in 45 states, the District of Columbia, Guam and Puerto Rico under the names of Macy's and Bloomingdale's. The company also operates macys.com and Bloomingdale's By Mail.