Federated: May merger progressing
By ASSOCIATED PRESS
Published May 20, 2006
CINCINNATI - Federated Department Stores Inc.'s top executive assured shareholders Friday that the integration of May Department Stores is progressing as planned following last year's acquisition that created the nation's largest department store chain.
Terry Lundgren, the company's chairman, president and chief executive, told shareholders at the company's annual meeting that there have been no major surprises and that Federated is on track with its financial plan.
He said that a major goal is accelerated growth in sales at stores open at least a year - considered a major indicator of a retailer's strength - and that product innovations will be rolled out in Macy's stores beginning this fall.
The acquisition gave Federated the Lord & Taylor and Filene's chains, among others. The Lord & Taylor and Bridal Group units will be sold.
Federated last week reported a first-quarter loss as it recorded charges from its $11 billion acquisition of May.
The retailer lost $52 million, or 19 cents per share, in the quarter ended April 29, but sales jumped 63 percent to $5.93 billion.
Federated, with corporate offices in Cincinnati and New York, operates more than 850 department stores and more than 720 bridal and formal-wear stores in 49 states, the District of Columbia, Guam and Puerto Rico. Federated also operates macy's.com and Bloomingdale's By Mail.