Cincinnati based leading department store retailer Federated Department Stores Inc reported diluted earnings per share of 84 cents for the second quarter of 2005, ended July 30. Earnings were within the company's prior guidance of 80-85 cents per share.
This represents an increase of 95 percent over diluted earnings per share of 43 cents for the second quarter of 2004. Included in the year-ago quarter were one-time costs of $59 million, or 20 cents a diluted share, related to the company's repurchase of $274 million of its long-term debt. Excluding these one-time costs, Federated's diluted earnings per share in the 2004-second quarter would have been 63 cents.
For the first half of 2005, Federated reported diluted earnings per share of $1.56, an increase of 63 percent from 96 cents per share in the first half of 2004. Excluding costs related to the debt repurchase, diluted earnings per share for the first half of 2004 were $1.16.
Terry J. Lundgren, Federated's Chairman, President and Chief Executive Officer, said the company is pleased with their performance to date in 2005. Sales growth is expected to accelerate in the second half of the year as the company continues implementation of its strategic priorities to improve assortments, pricing, the shopping experience and marketing.
"They look forward to completing two important transactions in the third quarter merger with The May Department Stores Company, and the sale of Federated's owned proprietary and Visa credit receivables to Citigroup," Lundgren said. "This will represent the beginning of a new era for company, and a period of positive long-term change that they believe will benefit their customers, employees and shareholders.
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