Last year Federated sold off $4.5 billion in operations, including its bridal and Lord & Taylor chains, which it acquired as part of its acquisitionof May Department Stores in 2005. But executives don't expect any more major sell-offs or store closings this year beyond normal operations, said Karen Hoguet, Federated's chief financial officer, in a conference call.

Federated forecasts eight store openings this year – six full-line units and two furniture stores. Same-store sales are predicted to come in at a 2% to 3% increase from 2006 for the full year.

During its fourth quarter, which ended Feb. 3, same-store sales rose 6.1% year over year. Total sales fell 4.3%, to just less than $9.2 billion, due to the closure of 80 duplicate stores as a result of the May acquisition. Some stores purchased in that deal, which were converted from regional department-store chains into Macy's, are still not up to speed, Hoguet says, because it has taken a while for them to build a customer base.