Cincinnati based leading department store retailer Federated Department Stores Inc reported total sales of $2.580 billion for the five weeks ended Oct. 1, 2005, an increase in total sales of 89.6 percent compared to total sales of $1.361 billion in the same period last year. On a same-store basis, Federated's September sales were up 1.3 percent.
For the year to date, Federated's sales totaled $10.912 billion, up 14.3 percent from total sales of $9.548 billion in the first 35 weeks of 2004. On a same-store basis, Federated's year-to-date sales were up 1.7 percent.
Federated's total sales for September include the May Company acquisition, which was completed Aug. 30, 2005. Same-store sales include only Macy's and Bloomingdale's locations open for more than one full fiscal year. Sales from the company's Bridal Group division, which the company intends to divest and is being treated as a discontinued operation, are excluded from Federated total September sales.
'They had expected September comp store sales at Macy's and Bloomingdale's to increase between 2 and 3 percent. But a number of factors have led to disappointing sales results,' said Terry J. Lundgren, Federated Chairman, President and CEO. 'These include lost sales from stores closed because of Hurricanes Katrina and Rita, reduced consumer spending resulting from higher gas prices, dampened consumer confidence and continued softness in their home store business.'
Based on August and September trends, Federated now expects same-store sales to rise by 1 to 2 percent in October, which would result in an increase of 1 to 1.5 percent in the third quarter of fiscal 2005. Same-store sales are expected to increase by 1 to 2 percent in the fourth quarter.
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