FEDERATED REPORT REVEALS DIVISIONS’ PERFORMANCES
Byline: Thomas J. Ryan
NEW YORK — Despite disruptions from assimilating former Broadway and Bullock’s stores, Macy’s West posted an 11.6 percent same-store gain in 1996, according to Federated Department Stores’ annual report.
The report, released last week, posted total sales performance by each division, but highlighted Macy’s West, citing the chain’s comp performance.
Macy’s West’s sales grew to $3.7 billion in 1996 from $2.5 billion the year before, a 48.6 percent increase. The division grew to 109 locations last year after Federated converted 52 former Broadway stores and 21 Bullock’s locations to the Macy’s nameplate. The results reflect the strength of Macy’s West management and the improving California economy.
Bloomingdale’s sales rose 12.5 percent to $1.46 billion, reflecting the addition of its first four stores in California. There are now 21 Bloomingdale’s units.
Bloomingdale’s by Mail catalog sales jumped 20.2 percent to $137 million and showed record profits, Federated noted.
At Stern’s, sales rose 4.3 percent to $881 million, although the store count was trimmed to 25 units from 27.
Burdines showed flat sales at $1.3 billion. The division added a store to close the year with 48.
At Macy’s East, sales dipped 2.1 percent to $4.5 billion from $4.6 billion, although it raised its unit count to 90 from 89.
The Rich’s/Lazarus/Goldsmith’s division’s sales declined 2 percent to $2.1 billion from $2.15 billion. The Atlanta-based division grew to 76 units from 75.
Sales at The Bon Marche, based in Seattle, sagged 5.6 percent to $892 million. It added one store to finish with 42 stores.
Sales at the 153-unit Aeropostale and Charter Club specialty division rose 2.4 percent to $167 million.
Federated also released its proxy statement showing that Allen Questrom, the outgoing chairman and chief executive officer, earned $1.97 million in salaries and bonus last year versus $2 million in 1995. In 1995, he also received an $11 million lump-sum payment as part of the long-term incentive program.
James M. Zimmerman, president and chief operating officer, earned $1.8 million versus $1.68 million. Zimmerman will succeed Questrom in May.
Ronald W. Tysoe, vice chairman and chief financial officer, earned $1.2 million against $1.3 million; Thomas G. Cody, executive vice president of legal and human resources, $1.1 million versus $1.1 million, and Dennis J. Broderick, senior vice president, general counsel and secretary, $554,367 versus $578,966.
As reported, Questrom plans to retire May 16, the date of Federated’s annual meeting. In retirement, Questrom will continue to receive his salary and annual bonus in 1997, plus a prorated portion of long-term incentives. Also, options to purchase 450,000 shares will be vested entirely upon retirement; they are currently worth about $6.2 million.
Zimmerman’s ceo contract, taking effect May 16, will provide for an annual salary of $1.25 million, plus bonuses and options to acquire 450,000 shares at an exercise price of 34 3/8 each.
Federated shares closed at 33 3/4, up 5/8, Friday in trading on the New York Stock Exchange.
Terry J. Lundgren entered a new contract effective May 16 upon his promotion to president and chief merchandising officer. He had been chairman of Federated’s Merchandising division since February 1994. His new contract provides for an annual base salary of $1 million, plus bonuses and options for 250,000 shares exercisable at 34 3/8 each.