Cincinnati – Federated Department Stores Inc. reported a loss Wednesday for its fiscal first quarter as the company booked charges to integrate its acquisition of May Department Stores. The company also forecast earnings below Wall Street expectations.
The operator of the Macy’s and Bloomingdale’s department- store chains lost $52 million, or 19 cents per share, in the quarter ended April 29 compared with a profit of $123 million, or 71 cents per share, a year ago.
Sales jumped 63 percent to $5.93 billion from $3.64 billion a year ago. The company had forecast sales between $5.75 billion and $6 billion. It said it lost 27 cents per share from continuing operations.
Federated bought former rival May last year, adding the Foley’s, Lord & Taylor and Filene’s chains, among others, to its department-store group. Foley’s stores in Colorado and elsewhere will be converted to Macy’s in September. Lord & Taylor and Bridal Group units are on the block and were accounted as discontinued operations.
Terry J. Lundgren, Federated’s chairman, president and chief executive, said 2006 is a transition year for the company and that the results show that the integration of May into Federated is on track.
“Considering this was the initial quarter of physically bringing together the Federated and May Co. organizations, we were very pleased with first-quarter results that were ahead of our expectations,” Lundgren said.
