Federated Cites Concerns About Fingerhut Delinquencies

Share this content:
The stock of Federated Department Stores Inc., Cincinnati, slid sharply yesterday after the company posted sales growth figures that were below analysts' expectations and said that credit delinquencies had increased in its Fingerhut division.


"We are concerned about the rise in credit delinquencies at Fingerhut in June, and we are monitoring this situation closely," James Zimmerman, chairman and CEO of Federated, said in a prepared statement.


Federated, the parent of Macy's, Bloomingdale's and other department store chains, acquired direct marketing giant Fingerhut Cos. last year. Fingerhut targets low- to middle-income consumers with catalogs and direct mail, and it offers to finance its customers' purchases.


For the five weeks ending July 1, Federated said its direct-to-consumer sales, which include its department store catalogs and Web sites in addition to Fingerhut, were $154 million, down 8.2 percent from the same period a year ago. Total sales for the company were $1.57 billion for the period, a decline of 0.3 percent from the year-ago period.
close

Next Article in Data/Analytics

Sign up to our newsletters

Company of the Week

Since 1985, Melissa has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here