Fingerhut Woes Hit Federated
Updated from 10:47 a.m. EST
Federated Department Stores (FD), which runs Macy's and Bloomingdale's among other retail destinations, said Wednesday that its operating earnings declined 32% in the latest quarter, as the company grappled with problems at its ailing Fingerhut catalog business.
Federated reported third-quarter operating income -- excluding asset writedowns and restructuring charges of $795 million linked to the Fingerhut unit -- of $204 million, or 26 cents a share, compared with $302 million a year earlier. Including those items, however, the Cincinnati-based company posted an overall net loss of $668 million, or $3.32 a share, compared with a profit of $123 million, or 56 cents a share, a year ago. Federated, which like other retailers also is dealing with the effects of a slower economy and higher fuel prices, was expected to post profits of 20 cents a share, according to First Call/Thomson Financial.
Federated finished Wednesday regular trading down 25 cents at $34.19.
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