Federated January Comp Sales Increase 3.7%

Business Wire, Feb 8, 2001

Business Editors

CINCINNATI--(BUSINESS WIRE)--Feb. 8, 2001

Federated Department Stores, Inc. today reported sales for the five weeks of January. The January period reflects an extra week in Fiscal 2000, creating a 53-week fiscal year that occurs approximately every six years in the accounting cycle for most retail companies.

Federated's total sales for January -- the five-week month ended February 3, 2001 -- were $1.105 billion, an increase of 14.5 percent over total sales of $965 million for the four weeks ended January 29, 2000. On a comparable-store, comparable four-week basis, Federated's January sales increased 3.7 percent, which the company said was better than anticipated.

For the 14-week fourth quarter, Federated's total sales were $6.112 billion, an increase of 2.3 percent over total sales of $5.973 billion for the 13 weeks ended January 29, 2000. On a comparable-store, comparable 13-week basis, Federated's fourth quarter sales increased 1.6 percent.

The company's total sales for the 53 weeks of Fiscal 2000 were $18.405 billion, an increase of 3.9 percent over total sales of $17.716 billion for the 52 weeks of the prior fiscal year. On a comparable-store, comparable 52-week basis, Federated's annual sales increased 2.0 percent.

Federated, with corporate offices in Cincinnati and New York, is one of the nation's leading department store retailers. Federated currently operates more than 400 department stores in 33 states and Puerto Rico under the names of Bloomingdale's, The Bon Marche, Burdines, Goldsmith's, Lazarus, Macy's, Rich's and Stern's, as well as Bloomingdale's By Mail, Macy's By Mail, macys.com and bloomingdales.com. Federated also operates the Fingerhut catalog and e-commerce subsidiary.

Simultaneous with the issuance of this release, the company also issued a release announcing the closing of its Stern's department store division and the conversion of 19 Stern's stores to Macy's and Bloomingdale's.

(NOTE: Weekly sales updates are available at 513/579-7987 and on the Internet at www.federated-fds.com.)

Sales Summary - $ in billions

                                                  Total
                            Period Ended        Increase   Comp-Store
                      2/03/2001     1/29/2000  (Decrease) Increase (1)
                      ---------     ---------  ---------- ------------
Month                 (5 weeks)     (4 weeks)
-----
Department Stores       $ 1.005        $ .789       27.4%       3.7%
Direct-to-Customer (2)     .100          .176     (43.1)%
                      ---------     ---------   ---------
 Total Federated        $ 1.105          .965     $ 14.5%

4th Quarter           (14 weeks)   (13 weeks)
-----------
Department Stores       $ 5.541       $ 5.198        6.6%       1.6%
Direct-to-Customer (2)     .571          .775     (26.3)%
                      ---------     ---------   ---------
 Total Federated        $ 6.112       $ 5.973        2.3%

Annual                (53 weeks)    (52 weeks)
------
Department Stores      $ 16.468      $ 15.850        3.9%       2.0%
Direct-to-Customer (2)    1.937         1.866        3.8%
                      ---------     ---------   ---------

 Total Federated       $ 18.405      $ 17.716        3.9%

Notes:

(1) Current periods are adjusted to reflect the same number of

weeks as in prior periods.

(2) The Direct-to-Customer segment includes the operations of

Fingerhut, which was acquired in March 1999, Bloomingdale's by

Mail, bloomingdales.com, Macy's by Mail and macys.com.