Federated Department Stores Inc

Federated Department Stores Inc. reported better-than-expected quarterly results and raised its forecast for the second half of the year as it converts more stores to the Macy's nameplate. The Cincinnati-based retailer reported net income of $317 million, or 57 cents a share, for its fiscal second quarter ended July 29, compared with $148 million, or 42 cents, a year earlier. Revenue nearly doubled to just under $6 billion from $3.62 billion.

Would Macy's tell Gimbel's? Maybe. Except, as New Yorkers well know, Gimbel's isn't around to listen anymore. Neither, for that matter, is Bullock's or Broadway in Los Angeles. Or Wanamaker's in Philadelphia. Or J.L. Hudson in Detroit. Heading into the weekend, Federated Department Stores Inc. -- owner of the Macy's and Bloomingdale's chains -- looked to be in the final stages of its mating dance with May Department Stores Co.

Terry J. Lundgren is known as a deft merchandiser, a retail innovator and a student of changing shopping trends. But can he stop Federated Department Stores Inc. from just running in place? It's a bigger question than ever now that Federated is planning to buy May Department Stores Co. Lundgren, a 52-year-old Long Beach native, gets high marks from some observers for keeping Federated a relevant player in the department-store industry.

Federated Department Stores Inc.'s planned purchase of May Department Stores Co. is being scrutinized by the Federal Trade Commission, which requested additional information on the transaction. Cincinnati-based Federated and St. Louis-based May said they still expected the transaction to be completed in the third quarter.

Bloomingdale's may expand the 37-store chain by opening smaller stores in new markets, Chairman Michael Gould said Friday. Bloomingdale's may open stores that are 150,000 to 180,000 square feet, compared with its average of 225,000 to 240,000 square feet, in markets that include Arizona, Nevada and Florida, Gould said. He declined to specify the number of stores or the timing. Bloomingdale's is the smaller of two chains owned by Cincinnati-based Federated Department Stores Inc.

Federated Department Stores Inc. reported strong fiscal fourth-quarter profit Tuesday and said it would change its name to Macy's Group Inc. But the department store operator -- still struggling to integrate former May Department Stores Co. stores -- offered a profit forecast well below Wall Street expectations. Meanwhile, Target Corp. said fourth-quarter profit rose a better-than-expected 19%, fueled by strong holiday sales.

Federated Department Stores Inc. reported lower-than-expected quarterly profit Wednesday, citing disappointing sales at new Macy's stores, and cut its outlook for the current period on concern about the economy. The retailer said it would step up television advertising and some promotions in an effort to spur store traffic, particularly at former May stores that it converted to the Macy's nameplate.