NEW YORK — Federated Department Stores Inc. on Wednesday posted a first-quarter loss, but said its integration of The May Department Stores Co. remains “solidly on track.”
For the three months ended April 29, the loss was $52 million, or 19 cents a diluted share, versus $123 million in income, or 71 cents, in the same year-ago quarter. The results included May Co. results, which Federated acquired on Aug. 30, 2005. The company plans to divest its Lord & Taylor and Bridal Group divisions, and those results are being treated as discontinued operations. The loss from continuing operations was $74 million, or 27 cents a share.
Sales rose 62.9 percent to $5.9 billion from $3.6 billion, but same-store sales were flat for the period.
The company said that proceeds from its sale of its divisions will be used to pay down short-term borrowings in connection with its May acquisition. The retailer also said that sales and earnings guidance for 2006 remain unchanged. Excluding certain items such as one-time merger integration and inventory valuations costs, earnings per diluted share is expected between 45 cents and 55 cents in the second quarter, the $3 to $3.25 range in the third and fourth quarters, and at $3.50 to $3.75 for the year.
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