Federated's Q4 Surprises Execs

CINCINNATI-An unexpected strong performance by the recently acquired May Department Stores portfolio and a tax settlement with the IRS boosted Federated Department Stores’ Q4 results. The company posted earnings per share of $2.45 for the period that ended Jan. 28, beating executives’ previous estimates by 39 cents to 49 cents.

Federated’s same-store sales, inching up 1.1%, were also above the single-digit drop executives expected the chains to post. Total sales were nearly $9.6 billion, up 86.9%, mainly due to the $11-billion May acquisition it closed in August, making it the largest department-store chain in the country with about 850 units.

The company’s Florida Macy’s stores and Bloomingdales chains were the most successful during the quarter, says Karen Hoguet, Federated’s chief financial officer. However, five units in Florida and one in New Orleans remain closed due to hurricane damages.