NEW YORK – Federated Department Stores Inc. issued sales and earnings guidance for 2006 that called for same-store sales showing a gain of 2 to 3 percent.
Total sales are expected to be in the range of $27.25 billion and $27.75 billion with diluted earnings per share of between $3.45 and $3.70. The EPS estimate excludes integration costs as well as the gain associated with the sale of the retailer’s credit card business.
“The integration of Federated and May Company is on track and we are optimistic about the success of Macy’s and Bloomingdale’s as national brands,” said Terry Lundgren, Federated chairman, president and chief executive officer, in a statement. “Forecasting for 2006 with precision is particularly challenging because of the number of variables related to the integration. While 2006 is a transition year, we expect significant improvement in 2007 and a return to our historical peak levels of profitability, adjusted for the impact of the sale of credit portfolios, by the 2008-2009 period.”