Federated Reports Third Quarter E.P.S. of 26-Cents, Excluding Fingerhut Restructuring Charges.Business Editors CINCINNATI--(BUSINESS WIRE)--Nov. 8, 2000 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. (NYSE NYSE See: New York Stock Exchange :FD) today reported diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of of 26 cents, excluding asset impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. and restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. related to its Fingerhut businesses, for the third quarter ended October 28, 2000. Including these items, the company reported a diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. per share loss of $3.32, compared to income of 56 cents a share in the same period last year. For the first 39 weeks of fiscal 2000, Federated reported diluted earnings per share of 98 cents, excluding asset impairment and restructuring charges related to its Fingerhut businesses. Including these items, the company reported a diluted per share loss of $2.50, compared to income of $1.58 a share in the same period last year. Operating Income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. Operating income in the third quarter of 2000 totaled $204 million, excluding Fingerhut asset impairment and restructuring charges of $795 million. In the same period of 1999, the company produced operating income of $302 million. For the first 39 weeks of 2000, the company posted operating income of $677 million, excluding Fingerhut asset impairment and restructuring charges of $795 million, compared to operating income of $845 million in the same period last year. Sales Sales for the third quarter of 2000 totaled $4.195 billion, an increase of 1.4 percent over total sales of $4.137 billion for the same period last year. On a comparable-store basis, sales in the quarter increased 1.9 percent. For the 39 weeks ended October 28, 2000, sales totaled $12.292 billion, an increase of 4.7 percent over total sales of $11.743 billion for the same period last year. On a comparable-store basis, sales were up 2.3 percent in the period. Store Openings Federated opened three new Macy's stores in the third quarter -- two Macy's East stores, one in Plaza Las Americas in San Juan, Puerto Rico San Juan (IPA: [saŋ hwaŋ]) (from the Spanish San Juan Bautista, "Saint John the Baptist") is the capital and largest municipality on Puerto Rico. , and the other in City Place in West Palm Beach, FL, and a Macy's West Macy's West is a division of Macy's, Inc. (formerly Federated Department Stores) and headquartered in San Francisco, California. It currently operates approximately 200 stores throughout Arizona, California, Colorado, Guam, Hawaii, Nevada, New Mexico and Texas. store in Roseville Mall, Sacramento, CA. In addition, the company has opened the following stores in November: a Macy's East at Fair Oaks Mall Fair Oaks Mall is an enclosed shopping mall just outside the City of Fairfax, Virginia. It is located at the intersection of Interstate 66 and U.S. Route 50. The mall has a Gross leasable area (GLA) of 1,574,000 ft². in Fairfax, VA; a Macy's West at Lakewood Center in Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. ; and a Rich's at the Mall of Georgia Mall of Georgia is an enclosed shopping mall in Buford, a suburb of Atlanta, Georgia, United States. Built in 1999, it is currently the largest shopping mall in the state of Georgia[1], comprising more than two hundred stores on three levels. in Atlanta. A Burdines at Oviedo Mall in Orlando, and a Stern's in South Brunswick South Brunswick is the name of several places in the United States of America:
Federated, with corporate offices in Cincinnati and New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , is one of the nation's leading department store retailers, with annual sales of more than $17.7 billion. Federated currently operates more than 400 department stores in 33 states and Puerto Rico Puerto Rico (pwār`tō rē`kō), island (2005 est. pop. 3,917,000), 3,508 sq mi (9,086 sq km), West Indies, c.1,000 mi (1,610 km) SE of Miami, Fla. under the names of Bloomingdale's, The Bon Marche Marche, region, Italy Marche (mär`kā) or the Marches, region (1991 pop. 1,429,205), 3,742 sq mi (9,692 sq km), E central Italy, extending from the eastern slopes of the Apennines to the Adriatic Sea. , Burdines, Goldsmith's, Lazarus, Macy's, Rich's and Stern's. Federated also operates the Fingerhut, Bloomingdale's By Mail, Macy's By Mail, macys.com and bloomingdales.com direct-to-consumer catalog catalog, descriptive list, on cards or in a book, of the contents of a library. Assurbanipal's library at Nineveh was cataloged on shelves of slate. The first known subject catalog was compiled by Callimachus at the Alexandrian Library in the 3d cent. B.C. and electronic commerce subsidiaries. (NOTE: Information on Federated and its operating divisions is available on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at www.federated-fds.com. The company also will provide a live webcast of its third-quarter earnings call with analysts at 10:30 a.m. ET today. The webcast can be accessed through the Federated website, and pre-registration is requested. The webcast will be archived for subsequent replay beginning approximately two hours after the live call concludes.)
FEDERATED DEPARTMENT STORES, INC.
Consolidated Statements of Income (Unaudited) (Note 1)
(All amounts in millions except percentages and per share figures)
13 Weeks Ended 39 Weeks Ended
--------------- --------------
October 28, October 30, October 28, October 30,
2000 1999 2000 1999
----------- ----------- ----------- -----------
Net Sales $ 4,195 $ 4,137 $12,292 $11,743
--------- --------- --------- ---------
Cost of Sales:
Recurring 2,515 2,454 7,289 6,947
Inventory valuation
adjustments related
to Fingerhut
restructuring 35 - 35 -
--------- --------- --------- ---------
Total cost of sales 2,550 2,454 7,324 6,947
Percent to sales 60.8% 59.3% 59.6% 59.2%
Selling, general and
administrative
expenses 1,476 1,381 4,326 3,951
Percent to sales 35.2% 33.4% 35.2% 33.6%
Asset impairment and
restructuring charges
(Note 3) 760 - 760 -
Percent to sales 18.1% -% 6.2% -%
--------- --------- --------- ---------
Operating Income
(Loss) (591) 302 (118) 845
Percent to sales (14.1%) 7.3% (1.0%) 7.2%
Interest expense -
net (111) (91) (318) (251)
--------- --------- --------- ---------
Income (Loss) Before
Income Taxes (702) 211 (436) 594
Federal, state and
local income tax
benefit (expense) 34 (88) (80) (247)
--------- --------- --------- ---------
Net Income (Loss) $ (668) $ 123 $ (516) $ 347
--------- --------- --------- ---------
--------- --------- --------- ---------
FEDERATED DEPARTMENT STORES, INC.
Consolidated Statements of Income (Unaudited) (Note 1)
13 Weeks Ended 39 Weeks Ended
--------------- --------------
October 28, October 30, October 28, October 30,
2000 1999 2000 1999
----------- ----------- ----------- -----------
Basic Earnings (Loss)
per share
(Note 4) $ (3.32) $ .59 $ (2.50) $ 1.65
--------- --------- --------- ---------
--------- --------- --------- ---------
Diluted Earnings
(Loss) per share
(Note 4) $ (3.32) $ .56 $ (2.50) $ 1.58
--------- --------- --------- ---------
--------- --------- --------- ---------
Notes: (1) Because of the seasonal nature of the retail business, the results of operations for the 13 and 39 weeks ended October 28, 2000 and October 30, 1999 (which do not include the Christmas season) are not indicative of such results for the fiscal year. Certain reclassifications were made to prior period amounts to conform with the classifications of such amounts for the most recent periods. (2) Substantially all department store merchandise inventories are valued by the retail method and stated on the LIFO (Last In-First Out) A queueing method in which the next item to be retrieved is the item most recently placed in the queue. Contrast with FIFO. LIFO - stack (last-in, first-out) basis, which is generally lower than market. Application of this method did not impact cost of sales for the 13 and 39 weeks ended October 28, 2000 or October 30, 1999. Direct-to-customer merchandise inventories are stated at the lower of FIFO (First In First Out) A storage method that retrieves the item stored for the longest time. Contrast with LIFO. See traffic engineering methods. FIFO - first-in first-out (first-in, first-out first-in, first-out n. A method of inventory accounting in which the oldest remaining items are assumed to have been the first sold. In a period of rising prices, this method yields a higher ending inventory, a lower cost of goods sold, a higher gross ) cost or market. (3) Asset impairment and restructuring charges represent the write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. related to the Fingerhut acquisition totaling $673 million, the write-down of certain Fingerhut Internet-related investments totaling $60 million, the write-down of fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → totaling $18 million and severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when costs related to the downsizing (1) Converting mainframe and mini-based systems to client/server LANs. (2) To reduce equipment and associated costs by switching to a less-expensive system. (jargon) downsizing of Fingerhut operations totaling $9 million. Excluding these items, along with the $35 million of inventory valuation adjustments related to the Fingerhut restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). , diluted earnings per share would be $.26 for the 13 weeks ended October 28, 2000 and $.98 for the 39 weeks ended October 28, 2000. (4) Common shares outstanding used in computing computing - computer basic earnings (loss) per share were 201.1 million and 210.4 million for the 13 weeks ended October 28, 2000 and October 30, 1999, respectively, and 206.8 million and 209.7 million for the 39 weeks ended October 28, 2000 and October 30, 1999, respectively. Potential common shares used in computing diluted earnings (loss) per share were 201.1 million and 219.9 million for the 13 weeks ended October 28, 2000 and October 30, 1999, respectively, and 206.8 million and 219.4 million for the 39 weeks ended October 28, 2000 and October 30, 1999, respectively.
FEDERATED DEPARTMENT STORES, INC.
Operating Segment Data (Unaudited)
(millions)
13 Weeks Ended 39 Weeks Ended
-------------- --------------
October 28, October 30, October 28, October 30,
2000 1999 2000 1999
----------- ----------- ----------- -----------
Net Sales
Department Stores $ 3,742 $ 3,646 $10,927 $10,652
Direct-to-Customer 453 491 1,365 1,091
--------- --------- --------- ---------
Total $ 4,195 $ 4,137 $12,292 $11,743
--------- --------- --------- ---------
--------- --------- --------- ---------
Operating income (loss)
Department Stores $ 329 $ 328 $ 1,065 $ 999
Direct-to-Customer:
Recurring (76) 25 (282) (4)
Asset impairment and
restructuring
charges (Note 1) (62) - (62) -
--------- --------- --------- ---------
Total Direct-to-
Customer (138) 25 (344) (4)
Corporate and other:
Recurring (Note 2) (49) (51) (106) (150)
Asset impairment and
restructuring
charges (Note 3) (733) - (733) -
--------- --------- --------- ---------
Total corporate and
other (782) (51) (839) (150)
--------- --------- --------- ---------
Total $ (591) $ 302 $ (118) $ 845
--------- --------- --------- ---------
--------- --------- --------- ---------
Depreciation and
amortization expense
Department Stores $ 153 $ 157 $ 451 $ 461
Direct-to-Customer 11 11 33 28
Corporate and other
(Note 2) 22 23 69 62
--------- --------- --------- ---------
Total $ 186 $ 191 $ 553 $ 551
--------- --------- --------- ---------
--------- --------- --------- ---------
FEDERATED DEPARTMENT STORES, INC.
Operating Segment Data (Unaudited)
Notes: (1) Asset impairment and restructuring charges for the Direct-to-customer segment represent the write-down of fixed assets totaling $18 million, severance costs related to the downsizing of Fingerhut operations totaling $9 million and $35 million of inventory valuation adjustments related to the Fingerhut restructuring. (2) Corporate and other consists of the income or expense associated with the corporate office and certain items managed on a company-wide basis (e.g. intangibles, financial instruments, investments, retirement benefits and properties held for sale or disposition). (3) Asset impairment and restructuring charges for the Corporate and other segment represent the write-down of intangible assets related to the Fingerhut acquisition totaling $673 million and the write down of certain Fingerhut Internet-related investments totaling $60 million. |
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