Federated Misses Estimates

Last year, Federated changed the names of hundreds of department stores -- including brands such as Filene's, Hechts and Strawbridge's -- to Macy's, and it has seen weakness as consumers loyal to the old chains haven't yet embraced the Macy's concept.

Federated, which is set to change its name to Macy's Group next month, said April has given it "cause for concern" about the consumer and economic environment. It lowered its second-quarter earnings forecast to 35 cents to 45 cents a share due to the economic uncertainty. Previously, Federated forecast earnings of 40 cents to 45 cents a share for the period.

The guidance excludes any merger-integration costs. Analysts, on average, expect a profit of 45 cents a share.

The company also cut its second-quarter sales projection to $6 billion to $6.1 billion from a prior view of $6.1 billion to $6.2 billion. Wall Street forecast sales of $6.12 billion.

For the full year, Federated backed its guidance for earnings from continuing operations of $2.45 to $2.60 a share. Analysts estimate earnings of $2.68 a share.