Federated Department Stores Inc., owner of the Macy’s and Bloomingdale’s chains, on Wednesday reported a third-quarter loss of $3 million, compared with a profit of $436 million, during the same period a year ago.
Revenue for the quarter, ended Oct. 28, grew 6 percent to $5.89 billion, from $5.56 billion during the same period a year ago. Same-store sales rose 5.9 percent in the quarter.
Excluding merger integration costs related to the May Department Stores acquisition and inventory adjustments that totaled $90 million, the company said. Last year, the company recorded a gain of $384 million on the sale of credit card receivables to Citigroup, as well as merger integration costs of $39 million and a settlement gain of $10 million.
“Our third quarter earnings performance was at the high end of our expectations. On a year-to-date basis, we’re ahead of our guidance,” said Terry J. Lundgren, Federated’s chairman, president and chief executive officer. “We continue to view 2006 as a transition year that has included a tremendous amount of change for our organization, notably a transition of more than 400 stores to the Macy’s nameplate.”
The company said it expects sales of $9.1 billion to $9.4 billion in the fourth quarter.Follow JCK on Instagram: @jckmagazine
Follow JCK on Twitter: @jckmagazine
Follow JCK on Facebook: @jckmagazine