FEDERATED 'ON TRACK' AS SALES SURGE; DESPITE DRAMATIC GROWTH, COSTS OF MAY CO. ACQUISITION PULL DEPARTMENT STORE RETAILER INTO RED IN FIRST QUARTER.(Federated Department Stores Inc., May Department Stores Co.)

Daily News Record, May, 2006 by Young, Vicki M.

Byline: VICKI M. YOUNG

NEW YORK - Federated Department Stores Inc.'s bottom line for the first quarter of its "transition year" was heavily weighed down by the costs of merging with May Department Stores.

The retailer last Wednesday posted a $52 million loss in the period, but managed to beat its own guidance and said its integration of May Department Stores Co. remains "solidly on track" as sales soared.

Meanwhile, the books are out for both Lord & Taylor and the Bridal Group businesses. Federated is seeking $1.2 billion for Lord & Taylor. Financial and industry sources said Federated wants between $800 million and $1 billion for the Bridal Group, which includes David's Bridal.

For the three months ended April 29, the loss was...

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