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Changing web strategy cost Federated $47 million
Federated Department Stores is taking a $44 million restructuring charge related to the reorganization of Macys.com, Bloomingdales.com and Bloomingdale`s By Mail. It also will take an inventory valuation adjustment charge of $3 million.
Federated Department Stores Inc. is taking a $44 million restructuring charges related to the reorganization of Macys.com, Bloomingdales.com and Bloomingdale`s By Mail, the company reported today. Further, it will take an inventory valuation adjustment charge of $3 million related to the reorganization of the three groups. All costs occurred in the fourth quarter as Federated scaled back Bloomingdales.com and re-focused Macys.com.
For 2001, which ended Feb. 2 for Federated, same-store sales were down 5.3%. Sales totaled $15.651 billion vs. $16.638 billion the previous year, which had an additional week.
In the fourth quarter, Federated`s same-store sales were down 6%. On a same-store, comparable-calendar basis that adjusts for the 53 weeks pf the prior year, sales were down 3.9%. Fourth quarter sales were $5.13 billion vs. $5.6 billion in Q4 2000, which is where the extra week occurred. Inventories at the end of fiscal 2001 were down 7% in comparable stores from prior year-end levels.
Federated posted income from continuing operations of $518 million before the extraordinary item for the 52 weeks of fiscal 2001, compared to earnings of $821 million for the 53 weeks of fiscal 2000.