Federated posts 37% increase in earnings

Federated Department Stores Inc. said fiscal second-quarter earnings rose 37% to $86 million, or 43 cents a share, as the Fingerhut catalog business rebounded from year-earlier losses. The

owner of Macy’s and Bloomingdale’s stores said sales fell 8.2% to $3.73 billion but sales of teen and children’s clothes have picked up. The company also reiterated a full-year forecast for

earnings of at least $3.60 a share, more than analysts’ $3.55 average estimate. In the last 30 days, analysts’ average forecast fell to 41 cents a share from 45 cents, according to Thomson

Financial/First Call. Before the company reduced its forecasts last month, the average was 65 cents. Fingerhut tightened credit standards, mailed fewer catalogs and shut Web sites last year

after shoppers failed to pay bills on time and its online business dried up. Shares of Cincinnati-based Federated rose 93 cents to $38.33 on the New York Stock Exchange. MORE TO READ