Federated Beats 2Q Estimates

Federated Department Stores Inc. (Cincinnati) reported that its second quarter earnings exceeded the company's original guidance and its income increased 8.5 percent from a year ago.

Sales were flat and same-store sales were down 2.8 percent.

Chairman and ceo James Zimmerman said the company's second quarter earnings performance reflects strong gross margins that more than offset weaker-than-anticipated sales.

During the quarter, the nation's largest pure department store retailer opened two new stores — a Bon Marche in Yakima, Wash., and a Burdines furniture store in Fort Lauderdale, Fla.

Sales in the first 26 weeks of 2002 were down 1.5 percent from a year ago and same-store sales were down 2.9 percent.

The retailer has revised downward its expectations for the fall. It says it now expects a 1-3 percent same-store sales increase for the season, given the current weakness in the economy and the company's recent lower-than-anticipated sales trend. This compares to a prior guidance of 3-3.5 percent for the period.