Headlines

Federated Updates its Downgrade

Now expects 7-10 percent sales decreases for the rest of 2001

Published

23 years ago

October 19, 2001

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Federated Department Stores (Cincinnati) has further downgraded its earnings forecast for the third and fourth quarters of fiscal 2001.

In the wake of the September 11 terrorist attacks and subsequent events, the operator of about 450 stores under seven separate nameplates said it expects same-store sales to decline 7 to 10 percent in both October and the fourth quarter.

“These sales declines will result in significant markdowns, which will be booked in the third and fourth quarters,” said chairman and ceo James Zimmerman. “We have significantly reduced planned merchandise receipts for the fall season to correspond with our lower sales expectations, although we have taken steps to ensure that new and seasonal merchandise continues to flow into our stores throughout the period.”

Federated operates Bloomingdale's, Macy's, Lazarus, The Bon Marche, Burdines, Rich's and Goldsmith's stores in 34 states.