COMP DECLINE TO WANE FOR FEDERATED IN JULY
NEW YORK — Federated Department Stores isn’t expecting its same-store sales to rebound into positive territory in July, but it’s not expecting declines to be as great as they were in June.
The Cincinnati-based operator of Macy’s, Bloomingdale’s and numerous other department stores said in a recorded message Monday that its same-store sales in July, the final month of its second quarter, are expected to drop approximately 2 percent from last year’s comparable month. Its June comps were down more than thrice that level, 6.4 percent.
Federated’s June tumble, which followed a 3.3 percent decline in May comparable-store sales, was steep but hardly unprecedented. Arch rival The May Department Stores Co. reported its comps dropped 7.7 percent during the month, while Dillard’s saw its comps decline 4 percent and the Marshall Field’s department-store unit of Target Corp. weathered an 11.8 percent fall. Advancers in the department-store sector included Kohl’s (1.7 percent), Nordstrom (1.4 percent) and J.C. Penney Co. (3.8 percent).
The news barely affected Federated’s stock, which on Monday closed down 9 cents, to $38.63, in New York Stock Exchange trading, 22.6 percent short of its 52-week high of $49.90.
As reported, Federated earlier this month said it now expects third-quarter comps to decline 1 to 2 percent, after initially projecting that same-store sales would be flat to up 1 percent. It cut second-quarter earnings estimates at the same time.