Federated Department Stores has reported a second-quarter profit increase, boosted by a tax settlement and the sale of its credit card receivables.

The company, which owns Macy's and Bloomingdale's, posted profit of US$317m compared to $148m last year.

Quarterly revenue went up 65% to nearly $6bn, missing analyst predictions of $6.15bn. Same-store sales grew 4.6%, meeting the company's guidance.

Year-to-date sales grew 64% and same-store sales grew 2.2%.

Chairman, president and CEO Terry J Lundgren said: "We were pleased to have exceeded our earnings guidance this quarter, indicating that the Federated-May Company integration process remains solidly on track.

"In particular, we are pleased with the comp store sales progress in existing Macy's and Bloomingdale's locations, which reflect our strategy beyond the nationwide Macy's brand launch beginning 9 September.

"We are still in the process of transitioning the former May Company locations with significant merchandise assortment change-outs, clearance sales of discontinued inventory and remodeling activity which is disruptive to the business, and our sales performance in these stores continues to lag."