Federated Plans To Become The Macy's Group
The move is a logical next step for the company, which acquired May Department Stores, and converted those brands to the Macy's nameplate last September.
"Macy's Group is a name that more accurately reflects the transformation of our business in recent years," the company said. "Macy's Group is the appropriate name for our company, given that about 90 percent of our sales involve the Macy's brand. That said, Bloomingdale's is--and will remain--a very important part of the company. Becoming Macy's Group will in no way limit or constrict us from growing in any direction in the future."
The company also announced better-than-expected fourth-quarter earnings. Sales for the 14-week period decreased 4.3% to $9.2 billion, due to the closing of about 80 duplicative store locations over the past year.
"For the fiscal year, sales came in at $27 billion, an increase of 21% from fiscal 2005. On a 52-week comparable same-store basis, Federated's sales for fiscal 2006 were up 4.4%," the company said. For the year ahead, the company predicted a same-store sales gain of 2-3.5%.
Target Corp. also reported fourth-quarter results that beat Wall Street's expectations, with a 22% jump in earnings, due to strong sales in the holiday months.
Revenues in the fourth quarter increased 16.3%, to $19.7 billion, with comparable-store sales gaining 4.8%. For fiscal 2006, total revenues increased 13.1%, to $59.5 billion, with comparable store sales increasing 4.8% for the full year, as well.