Federated’s 4th-Quarter Profit Dips 3.1%

Federated Department Stores Inc., operator of Macy’s, Bloomingdale’s and other chains, said fiscal fourth-quarter earnings fell 3.1% because of higher costs and a loss at its catalog and Internet division.

Profit from operations declined to $434 million, or $2.15 a share, from $448 million, or $2.04, a year earlier. The earnings-per-share figure, which exceeded analysts’ expectations of $2.10, reflects fewer shares outstanding in the latest quarter because of a stock buyback.

Federated’s sales in the period ended Feb. 3 rose 2.4% to $6.12 billion.

Falling orders at the Bloomingdale’s by Mail catalog unit led Federated to liquidate inventory, resulting in a $6-million loss for the Internet and catalog division.

The department store division fared better as increased sales of private-label clothing helped earnings rise 7.7% in the face of the retail industry’s worst holiday season since 1995.

Fewer orders at Fingerhut, Federated’s other major piece of the Internet and catalog business, contributed to the 26% decline in sales at the catalog division.

Separately, the Cincinnati-based company announced management changes in its department store business, effective April 1.

Susan Kronick, chairman of the Burdines division in Florida, was named group president of Federated to oversee Burdines, Bon Marche, Rich’s, Lazarus and Goldsmith’s stores. Timothy Adams, president of Bon Marche, will succeed her at Burdines.

Federated shares rose $1.66 to close at $47.37 on the New York Stock Exchange.

At a Glance

Other earnings, excluding one-time gains or charges unless noted:

* AutoZone Inc., the No. 1 auto parts retail chain in the U.S., said its second-quarter earnings fell 19% to $31.7 million, or 28 cents a share, on a 5% increase in sales to $974 million. The results met lowered analysts’ forecasts.

* Intimate Brands Inc. said profit for its fiscal fourth quarter fell 16% to $227.5 million, or 46 cents a share, as post-holiday markdowns at its popular Victoria’s Secret stores squeezed gross margins. The results matched analysts’ lowered expectations. The company, which is 84% owned by Limited Inc., said sales rose 5% to $1.94 billion. Sales at its stores open at least a year fell 3%.

* H&R; Block Inc. reported an unexpected profit in its third quarter of $5.6 million, or 6 cents a share, contrasted with a year-ago loss of $7.1 million, or 7 cents. Analysts were expecting a loss of 20 cents. The nation’s largest tax preparer said the strong performance was due primarily to earlier tax filings, with some business shifting to late January from the first two weeks of February. Because of this, it warned that it did not expect fourth-quarter growth to match that of the third quarter.