Federated Sales Down 20% Since Attacks
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Federated Department Stores Inc., operator of such chains as Macy’s and Bloomingdale’s, said sales have fallen 20% below forecasts since the Sept. 11 terrorist attacks and warned that it might have to reduce its full-year earnings outlook again if business does not improve.
The New York-based company also projected that sales at stores open at least a year will plunge 15% to 20% for September, dragged down by plummeting sales at its Manhattan flagship stores. Same-store sales are considered the best indicator of a retailer’s health.
Analysts had forecast Federated would earn 51 cents a share for the third quarter, which ends Nov. 30, $2.19 for the fourth quarter and $3.54 for the year, according to Thomson Financial/First Call.
Federated said it will provide revised full-year earnings estimates after management completes its assessment of sales expectations for the remainder of the year.
Federated shares rose $1.32 to $28.22 on the New York Stock Exchange, helped by a rally in the broader markets.
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