Macy's 1999 Annual Report Download - page 4

Dear Fellow Shareholder:
Some years are simply better than others. And at Federated, 1999 was one of the best.
It was a year in which Federated outpaced everyone’s expectations for both strong sales and earnings, fueled by a spectacular
performance from our department stores. And it was a year in which Federated positioned itself aggressively – and we think
appropriately – for where retail is heading in the years just ahead.
W ith our 1999 strategic focus on macys.com, bloomingdales.com and the acquisition of Fingerhut Companies, Inc., Federated
leaped ahead of the competition and into an exciting future defined by the availability of different retail channels for different
customers, and for different customer needs at different times. It is a future in which we believe that no single retail channel will suffice
for all customers all of the time. And while some customers will prefer one retail format over most others, we do not believe there ever
will come a time when one retail channel totally dislodges the rest.
In short, we see a future of more choice, not less. A future of expanding potential to provide service and convenience to new and
existing customers. And at Federated, we think the time to prepare for that future is now.
On the pages of this year’s annual report, you will read about what we are doing in key areas of our business as we move to
integrate our bricks-and-clicks retail formats in innovative new ways… As we redefine our department stores to appeal to new
generations of customers even as we strive to better serve today’s core customer base… As we identify, recruit and develop the full
potential inherent in Federated’s next generation of managers,
merchants and operations executives... And as we
develop new retail channels, tap new technologies and
exploit our state-of-the-art distribution and logistics
systems to better run our business.
It’s an important story, and one we are pleased to share
with you. But first, let’s take a moment to recap
1999’s significant financial performance:
• Diluted earnings per share of $3.62 in
1999 were up 18% over the prior year.
• Sales of $17.7 billion for the 52 weeks
ended January 29, 2000 increased
15% over prior-year sales of
$15.4 billion. On a comparable-
store basis, Federated’s 1999
sales increase of 4.5% was the
highest among major department
store competitors.
Letter to Shareholders
Letter to Shareholders
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