FEDERATED REPORTS LOSS, CITES MERGER COSTS.Byline: Associated Press Associated Press: see news agency. Associated Press (AP) Cooperative news agency, the oldest and largest in the U.S. and long the largest in the world. Federated Connected and treated as one. See federated database and federated directories. Department Stores This is a list of department stores. In the case of department store groups the location of the flagship store is given. This list does not include large specialist stores, which sometimes resemble department stores. Inc. lost $27.2 million in the second quarter, mostly because of costs associated with integrating the Broadway Stores Inc. group into Federated, the company said Wednesday. The loss was 13 cents a share for the quarter ended Aug. 3, in contrast to a loss of $66.9 million, or 37 cents a share, a year ago. Sales for the second quarter totaled $3.28 billion, up 7.8 percent from $3.05 billion a year ago. Comparing sales of stores open this year and a year ago, sales increased 1 percent from last year. Federated bought the 82-store Broadway chain in October. It said the cost of merging the Los Angeles-based chain into Federated was $98.9 million, before income taxes, or 29 cents a share, for the quarter. Excluding this expense, Federated said it would have had net income of $32.9 million, or 16 cents a share, in the latest quarter. That was higher than the 12 cents a share consensus of analysts surveyed in advance of the report by Zacks Investment Research Zacks Investment Research A firm that compiles earnings estimates and brokerage firm investment recommendations for thousands of publicly traded firms. . In trading on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. , Federated was up 87-1/2 cents a share at $33.75. Federated's loss last year included a charitable contribution charitable contribution n. in taxation, a contribution to an organization which is officially created for charitable, religious, educational, scientific, artistic, literary, or other good works. to the Federated Department Stores Foundation, and the costs of consolidating two Federated store groups and folding the former R.H. Macy & Co. retailer into the company. Federated bought Macy in December 1994. Excluding the charitable contribution and the consolidation costs, Federated would have had net income of $2.7 million, or 1 cent per share in the 1995 second quarter. For the first half of this year, Federated lost $65.1 million, or 31 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , compared with $123.9 million and 68 cents per share a year ago. Excluding consolidation costs and charitable expenses, Federated would have had a profit of $42.2 million, or 20 cents per share, for the first half this year, compared with a loss of $3.6 million, or 2 cents per share, for last year's first half. For the first six months, Federated had sales of $6.6 billion, up 9 percent from $6 billion a year ago. On a comparable-store basis, sales increased 3 percent this year from 1995. Federated said it is converting about 50 former Broadway, Emporium and Weinstock's stores to the Macy's nameplate, in addition to 18 former Bullock's stores in Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, that became Macy's stores during the quarter. The company is also changing four former Broadway stores to Bloomingdale's, so that store division can make its entry into California this fall. |
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