Federated rides strong quarter.(Federated Department Stores Inc.)

Home Textiles Today, May, 2005 by Hogsett, Don

CINCINNATI -- Helped by modestly stronger sales, wider margins and lower costs--and importantly putting behind it a handful of costs tied to store closings and the Macy's home store centralization that depressed the bottom line a year ago--Federated Department Stores Inc. boosted first quarter profits 26.8 percent, to $123 million from $97 million last year.

The number Wall Street watches, earnings per share, came in at 71 cents, up 34 percent from 53 cents a year ago, beating the retailer's original forecast of a 45 to 50 cent profit, and even its upwardly revised target of a 65 to 70 cent per-share profit. But skewing the year-over-year comparison somewhat, last year's earnings were reduced by 6 cents per share to cover store closing costs and the...

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