Federated Third-Quarter Profit Jumps on Credit Card Unit Sale

Federated Department Stores Inc., the second largest U.S. department-store company, said third-quarter profit jumped from the sale of its credit card business. Same- store sales rose less than 1 percent, hurt by three hurricanes.

Net income at the owner of Macy’s and Bloomingdale’s rose to $436 million, or $1.79 a share, from $74 million, or 42 cents, a year earlier. Total sales jumped 64 percent to $5.79 billion, lifted by the purchase of May Department Stores Inc. in August, the Cincinnati-based company said today in a statement.

Federated agreed in June to sell its credit card business to Citigroup Inc. to help finance the $11 billion May acquisition, lifting profit in the quarter. Chief Executive Terry Lundgren is expanding Macy’s to 730 locations to make it a national presence and adding more upscale apparel and accessories. Same-store sales for Federated have lagged behind J.C. Penney Co. and outperformed Saks Inc.

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