Federated Income Falls 38%

Share this content:
Federated Department Stores Inc. said yesterday that it earned net income of $32 million in the third quarter, down $20 million, or 38 percent, from the same period last year.


Including extraordinary item and restructuring charges, Federated's actual net income for its fiscal third quarter, which was the 13 weeks that ended Nov. 3, was $3 million. During the same period last year, the company lost $668 million in actual income with such charges included.


The charges in third-quarter 2000 resulted from the company's restructuring of its Fingerhut catalog division. This year's charges resulted from the closure of Federated's Stern's department stores and its acquisition of Liberty House Inc.


Federated's performance in the third quarter was affected by a sluggish economy and weak retail sales. James Zimmerman, president/CEO of Federated, Cincinnati, said he is hopeful sales will improve as the nation recovers from the Sept. 11 attacks.


The company restated its fourth-quarter projection of a 7 percent to 10 percent decline in sales. Federated first issued the projection when it revised its fourth-quarter outlook after Sept. 11.


Federated shares were up $2.19 to $37.02, a 6.29 percent increase, in trading on the New York Stock Exchange yesterday afternoon.


Loading links....
close

Next Article in Multichannel Marketing

Sign up to our newsletters

Company of the Week

We recently were named B2B Magazine's Direct Marketing Agency of the Year, and with good reason: We make real, measureable, positive change happen for our clients. A full-service agency founded in 1974, Bader Rutter expertly helps you get the right message to the right audience at the right time through the right channels. As we engage our clients' audiences along their journey, direct marketing (email, direct mail, phone, SMS) and behavioral marketing (SEM, retargeting, contextual) channels deliver information relevant to the needs of each stage. We are experts at implementing and leveraging marketing technologies such as CRM and marketing automation in order to synchronize sales and marketing communications. Our team of architects and activators plan, execute, measure and adjust in real time to ensure the strategy is working as needed and change things if it's not.

Find out more here »

DMN's 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