Profits Bounce Back for Federated

Share this content:
Federated Department Stores Inc.'s fiscal second-quarter earnings increased 72 percent as it recovered from heavy year-ago losses in its Fingerhut credit unit, the company said yesterday.

However, the company lowered its full-year earnings guidance.

The parent of Macy's and Bloomingdale's reported that net income for the quarter, which ended Aug. 4, increased to $110 million, or 55 cents per share, from $63 million, or 30 cents per share, last year. During the year-ago quarter, the company was battered by credit card delinquencies in its Fingerhut catalog unit.

Excluding charges related to the closure of Stern's department stores and its acquisition of the Liberty House chain, the company earned $86 million, or 43 cents per diluted share.

Analysts had estimated Federated's second-quarter earnings to be in the range of 39 cents to 49 cents per share, with a mean at 43 cents, according to Thomson Financial/First Call.

Federated, Cincinnati, reduced its second-quarter outlook last month because of poor performance at its department stores, which it attributed to the economy. The company said it expected to earn 40 cents to 50 cents per share, excluding restructuring charges. This was reduced from a prior projection of 70 cents to 75 cents per share.

Federated said difficult times are likely to continue and estimated that its full-year earnings, excluding charges, will range from $3.60 to $3.80 per share, down from its previous forecast of $3.60 to $3.90 per share.

Analysts on average had expected a profit of $3.55 per share, with estimates ranging from $3.21 to $3.89, according to First Call.

During the third quarter, the company projects earnings per share of 50 cents to 60 cents and fourth-quarter earnings of $2.20 to $2.35 per share. Analysts on average had expected third-quarter earnings of 55 cents per share and fourth-quarter earnings of $2.17 per share, according to First Call.


Next Article in Multichannel Marketing

Sign up to our newsletters

Company of the Week

USAData helps businesses find new customers and grow their current customers through a combination of data and digital marketing services, and easy-to-use SaaS technology products. We enrich customer data so businesses can more effectively target and communicate with customers, and connect them with their best look-alike prospects through digital and traditional channels. We make it easy through simple, self-serve applications and APIs, as well as through full-service programs managed by our Data and Digital experts. 

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

Relive the 2017 Marketing Hall of Femme

Click the image above