Federated Department Stores Inc, parent of Macy's and Bloomingdale's stores, on Tuesday said good holiday sales drove better-than-expected quarterly earnings, and predicted another strong month in February.
The Cincinnati-based department store operator, benefiting from an improving economy that has revived demand for luxury goods, said it earned $460 million, or $2.50 per share in the fourth quarter ended Jan. 31. That includes a $38 million, or 21 cents per share, tax-related gain.
A year earlier, Federated earned $341 million, or $1.78 per share.
Analysts, on average, had expected earnings of $2.26 per share, according to Reuters Research, a unit of Reuters Plc. The forecast excludes the tax-related gain.
Quarterly sales inched up to $5.05 billion from $5.02 billion a year earlier, while sales at stores open at least a year -- a key retail measure known as same-store sales -- rose 1.4 percent.
Federated posted better-than-expected holiday sales and a surprisingly strong January as bitterly cold weather across much of the eastern United States sent shoppers out for coats.
The strong demand helped retailers keep prices high and clear out winter inventory, making room for spring clothing.
Federated said February sales so far were much stronger than it had forecast. It now expects a 7 percent to 8 percent increase in February same-store sales, up from its earlier estimate of 2 percent to 3 percent growth.
For 2004, Federated forecast earnings per share in the range of $3.70 to $3.80, including store closing costs. Analysts, on average, expected earnings of $3.79 a share.