Federated Gets Excited After First Quarter Results

Federated Department Stores reported a 27% increase in quarterly profit, which beat the expectations of the company as well as those of Wall Street analysts. The company reported diluted earnings per share of 71 cents for the first quarter thanks to strong sales. Earnings per share in the quarter went up 34% from 53 cents for the first quarter of 2004. "We obviously were very pleased with the quarter's results and our above-expectations sales performance, especially since these comparisons are against a strong first quarter last year," said Terry J. Lundgren, Federated's chairman, president and CEO. "It demonstrates to us that focusing on sales is right for our business, and that our four key priorities - differentiated assortments, simplified pricing, an improved shopping experience and more effective marketing - are the right approach to making us a more attractive retailer." The positive financial report has gotten the company even more excited about its $11 billion takeover of May Department Stores. Completion of the deal is expected to occur in the third quarter. latest ebusiness news