Skip to main content

Federated Department Stores

undefined

reported a 23% drop in fourth-quarter profits as consumers spent less, but the parent company of Macy's and Bloomingdale's still beat analyst expectations and also raised its 2002 guidance.

Fourth-quarter earnings, before charges, dropped to $310 million, or $1.90 a share, from $400 million, or $2.23 a share, in the year-ago quarter. Wall Street had been expecting $1.86 a share, according to Thomson Financial/First Call. Part of the decline is due to the disposal of the Fingerhut catalog unit, effective Jan. 16 of this year.

Scroll to Continue

TheStreet Recommends

Sales for the quarter dropped to $5.13 billion from $5.6 billion last year, while same-store sales fell 6%.

For 2002, the company forecast improved earnings from continuing operations, expecting $3.30 to $3.55 a share for the year. The guidance is up from the company's January forecast of $3.25 to $3.50 a share.

Federated shares closed at $39.02 Monday before the announcement.