Federated Department Stores, Inc. today reported total sales of $1.570 billion for the five weeks ended July 1, 2000, a decrease of 0.3 percent from total sales of $1.575 billion for the same period last year. On a comp-store basis, Federated's June sales increased 0.5 percent.

For the first 22 weeks of 2000, Federated's sales totaled $6.939 billion, an increase of 7.4 percent over total sales of $6.463 billion for the same period last year.

On a comp-store basis, Federated's year-to-date sales are up 2.5 percent.

James M. Zimmerman, Federated's chairman and chief executive officer, said the company was disappointed with its June sales in both the department stores and the catalog operations. Zimmerman noted, however, that this year's June is being compared to a strong period last year, when Federated's June comp-store sales increased 8.4 percent.

"Although we were disappointed with our June sales, we did take the necessary markdowns in the department stores and ended the month with our store inventories in good shape. We are hopeful that July and the rest of the year will see some improvement in sales performance," Zimmerman said. "At the same time, we are concerned about the rise in credit delinquencies at Fingerhut in June, and we are monitoring this situation closely."

Federated, with corporate offices in Cincinnati and New York, is one of the nation's leading department store retailers, with annual sales of more than $17.7 billion. Federated currently operates more than 400 department stores in 33 states under the names of Bloomingdale's, The Bon Marche, Burdines, Goldsmith's, Lazarus, Macy's, Rich's and Stern's. Federated also operates the Fingerhut, Bloomingdale's By Mail, Macy's By Mail, macys.com and bloomingdales.com direct-to-consumer catalog and electronic commerce subsidiaries.

(NOTE: Information on Federated and its operating divisions is available on the Internet at http://www.federated-fds.com. Copies of past press releases and corporate background data also are available by calling Fax-On-Demand at 1-800-853-9150.)

Sales Summary - $ in billions
Period Ended
Total Increase
Comp-Store
5 weeks
7/1/2000
7/3/1999
(Decrease)
Increase
Department Stores
$1.416
$1.407
.7%
.5%
Direct-to-Customer(1)
.154
.168
(8.2)%
Total Federated
$1.570
$1.575
(.3)%
22 weeks
Department Stores
$6.153
$5.991
2.7%
2.5%
Direct-to-Customer(1)
.786
.472
Total Federated
$6.939
$6.463
7.4%


Note:
(1) The Direct-to-Customer segment includes the operations of Fingerhut, which was acquired in March 1999, Bloomingdale's by Mail, bloomingdales.com, Macy's by Mail and macys.com.