Federated Results Meet Lowered Forecasts

Federated Department Stores Inc., the owner of Macy’s and Bloomingdale’s chains, said its fiscal fourth-quarter profit dropped 23% as it reduced prices to attract holiday shoppers.

Profit from operations, excluding results from its Fingerhut unit and restructuring costs, fell to $310 million, or $1.90 a share. That met the company’s reduced forecast and beat analysts’ average estimate of $1.86.

Fingerhut’s results were excluded because Federated plans to sell or close the business, which has been a drag on the retailer’s earnings.

Federated also raised its earnings forecast for the current year to $3.30 to $3.55 a share, from a previous estimate of $3.25 to $3.50.

Shares of Cincinnati-based Federated rose $2.64 to close at $41.66 on the NYSE.