Federated Department Stores Inc. (Cincinnati) reported an 8.8 percent increase in total sales for the four weeks ended February 28, 2004. Same-store sales were up 9 percent.
Chairman, president and ceo Terry Lundgren said the February sales were much stronger than expected. “Part of February's exceptional performance is attributable to favorable weather comparisons between this year and last,” he said, “but there also is underlying sales strength in key merchandise categories such as women's ready-to-wear, jewelry, handbags, shoes and cosmetics that is very encouraging for the spring season overall.”
He added, however, that the company is still cautious about its home store sales trend, due in part to the ongoing home store reorganization.
Lundgren said the company's revised guidance for first quarter same-store sales growth is 4.5-6 percent. If the company achieves its plan for March-April (an increase in same-store sales of 2.5-3 percent), first quarter same-store sales would increase about 4.5 percent. Assuming the underlying sales trend continues, however, the company believes it could exceed that March-April plan by 1-1.5 percent, resulting in a first quarter same-store sales increase in the range of 5.5-6 percent.
Sales guidance for the remainder of the year remains unchanged: Same-store sales in that period, which will be compared to stronger periods of the prior year, are expected to be up 1-1.5 percent in the second quarter and 1.5-2 percent in the second half of the year, which constitutes the fall season.