Earnings Up for Dayton Hudson, Federated

Dayton Hudson Corp. and Federated Department Stores Inc.’s fiscal fourth-quarter earnings rose as the department-store companies kept a tight rein on costs amid modest gains in holiday and post-holiday sales. Dayton Hudson’s net income rose 20% to $356 million, or $1.52 a diluted share, from $296 million, or $1.27, before a charge a year ago. The company said higher sales and profit at its Target discount chain helped boost results. Same-store sales, or sales at stores open at least a year, gained 5%. Federated’s net income rose 11% to $379.1 million, or $1.66 a diluted share, from $342.5 million, or $1.55, before charges. Same-store sales rose 1.4%. Federated operates the Bloomingdale’s, Macy’s, Rich’s and Sterns chains. Shares of Minneapolis-based Dayton Hudson rose $2.25 to $80.06, and shares of Cincinnati-based Federated rose $1.50 to close at $47.88 on the NYSE.