Income Rises at Federated Despite Flat Sales
Sales were $3.48 billion during the quarter, which ended Nov. 2, the same as for the third quarter last year. On a same-store basis, Federated's fiscal third quarter sales fell 2 percent.
Federated completed the sale of the Arizona Mail Order and Figi's catalog businesses as well as other Fingerhut assets during the third quarter, resulting in an after-tax gain of $31 million. Discontinued operations for the year to date showed an after-tax gain of $180 million from the disposition of Fingerhut assets, producing cash of $731 million.
The company also reported that proceeds from the sale of the subsidiaries and other Fingerhut assets during the quarter exceeded the estimated amounts by $50 million before income taxes, or $31 million after income taxes.
· Wal-Mart Stores Inc. posted a 23 percent increase in third-quarter profit as the company earned $1.82 billion during the third fiscal quarter ended Oct. 31 compared to $1.48 billion in the same period last year. Fiscal third-quarter sales totaled $58.8 billion, up 11.5 percent from a year earlier as the company benefited from new store openings. The Wal-Mart Stores division posted operating profit of $2.7 billion, up 15.5 percent from a year earlier. Sam's Club posted operating profit of $240 million, down 2.4 percent. The international division posted an operating profit of $447 million, up 42.4 percent.
· Tiffany & Co., New York, posted increases of 10 percent in net sales and 46 percent in net earnings during the three months ended Oct. 31. During the fiscal third quarter, net sales of $366.03 million represented a 10 percent increase compared to $333.07 million recorded during the previous year. Net earnings rose 46 percent to $35.18 million from $24.03 million during the previous year. Direct marketing sales increased 11 percent to $37.34 million during the fiscal third quarter and 11 percent to $109.9 million in the year-to-date period. Combined Internet/catalog sales were up 19 percent and 27 percent.
· Too Inc., New Albany, OH, reported net income during the fiscal third quarter of $10.8 million compared to $8 million in the third quarter of 2001. Net sales for the specialty retailer of clothing for girls and young women during the 13 weeks ended Nov. 2 increased 11 percent to $164.6 million, compared to $148.8 million in the 13 weeks ended Nov. 3, 2001.