Federated Department Stores Inc reported total sales of $2.303 billion for the five weeks ended September 30, 2006, a decrease of 6.5 percent compared to total sales of $2.464 billion in the same period last year.
Total sales declined from September 2005 to September 2006, impacted by the divestiture or clearance of 78 duplicative store locations over the past year.
On a same-store basis, Federated's sales for September were up 6.2 percent. This exceeds the company's guidance for a same-store sales increase of 3 percent to 5 percent in September.
For the year to date, Federated's sales totaled $15.952 billion, up 47.8 percent from total sales of $10.796 billion in the first 35 weeks of 2005. On a same-store basis, Federated's year-to-date sales were up 3.0 percent.
"Customers responded positively to the nationwide re-launch of the Macy's brand in September," said Terry J. Lundgren, Federated's Chairman, President and Chief Executive Officer.
"Increased national marketing support led to better-than-expected results in our ongoing Macy's stores. In addition, sales trends improved in the former May Company locations."
Federated expects same-store sales to increase by 5 percent to 7 percent in October. The company continues to expect total third quarter sales of $5.9 billion to $6.1 billion.
Federated's same-store sales include only legacy Macy's and Bloomingdale's locations (those operating as Macy's or Bloomingdale's prior to September 2006).
Federated's total sales for September 2006 and September 2005 include the May Company acquisition, which was completed Aug. 30, 2005.
Total sales for January through August include former May Company locations in 2006 but not in 2005.
Excluded from September and year-to-date sales in 2006 and 2005 were the Lord & Taylor and Bridal Group divisions, which are being divested by the company and therefore are being treated as discontinued operations.
Federated Department Stores Inc
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