Federated Forced to Sell 26 Stores
New York City, Federated Department Stores plans to sell 26 stores in five states as part of anti-trust settlement related to the Cincinnati-based retailer’s acquisition of May Department Stores. The New York Attorney General’s office said the retailer has until Feb. 1, 2006, to secure offers for the stores, which in addition to New York are located in California, Massachusetts, Maryland and Pennsylvania. The move would leave Federated with 824 department stores.
Michaels 2Q Profit Jumps
Irving, Texas, Michaels Stores Inc. posted a 15% gain in second-quarter profit. Net income rose to $30.8 million, or 22? a share, from $26.7 million, or 19? a share, a year ago. Sales rose 9% to $745.5 million from $682.9 million a year ago.
Same-store sales increased 4.2% in the quarter, driven by a 2.4% rise in the average ticket and a 1.4% gain in transactions. The best-selling departments were jewelry and beading, paper-crafting, foam and yarn.
The Finish Line Lowers 2Q Earnings Guidance
Indianapolis, The Finish Line Inc. reported net sales of $341.6 million in the second quarter, up 9% year-over-year, despite a 2% dip in same-store sales. The retailer also lowered its guidance on second-quarter diluted earnings to the range of 37?-to-39? per share. The retailer had previously projected the figure would come in between 48? and 50? per share.