Federated Department Stores Inc. reported second-quarter profits of nearly double over the same period a year ago. It also said that it expects sales growth to accelerate in the second half.
Federated reported that net income for the quarter that ended July 30 jumped to $148 million, compared with $78 million, a year ago when the company took a $59 million charge to buy back $274 million of long-term debt.
Sales of $3.62 billion rose 1.2% over sales of $3.58 billion last year. Same-store sales were up 1.1%.
Meanwhile, May Department Stores Co. reported that second-quarter earnings fell by nearly half, saying it was hurt by expenses from the pending merger with Federated and disappointing same-store sales.
Quarterly income dropped to $52 million in the three-month period ended July 30. That compares with $101 million.
Net sales totaled $3.45 billion last quarter, up from $2.96 billion a year earlier. However, same-store sales were down 1.6 percent, May said.
Cincinnati-based Federated, which owns Macy’s and Bloomingdale’s, is set to acquire St. Louis-based May Department Stores Co., which owns Kaufmann’s and Lord & Taylor, in a deal worth nearly $11 billion. Shareholders of both companies approved the takeover last month. Federated expects the deal to close in the third quarter, following completion of regulatory review.