Macy's 2002 Annual Report Download - page 7

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reinvent initiatives in a single market,
we will be converting consolidated
Rich’s-Macy’s stores in metro Atlanta to
reinvent formats in 2003.
We expect to generate 2003 EPS of $3.05
to $3.25 during the year, including
store-closing costs of $45 million.
Same-store sales for the year currently are
forecasted to be flat to down 1.5 percent,
with the latter half of the year expected to
benefit from a strengthening economy
overall. Cash flow is anticipated to remain
strong in 2003.
Federated plans to open 12 new stores in
2003, and as always, the company will
continue to monitor any under-performing
locations that may be candidates for
future closures. The new stores planned for
2003 openings include: two Bloomingdale’s
in Atlanta, a Bloomingdale’s department
store in the SoHo area of New York City,
and Bloomingdale’s home stores in
downtown Chicago and Oakbrook, IL.
New Rich’s-Macy’s furniture galleries
will open in Atlanta and Augusta, GA.
The Bon Marché will open a new
department store in Redmond, WA, and a
furniture gallery in Tacoma, WA. Macy’s
East will open a new furniture gallery on
Staten Island, and Macy’s West will expand
its presence in Hilo and Maui, HI, with
the addition of two new stores there.
A total of $650 million has been budgeted
for capital expenditures in 2003.
Embracing change
Federated is a company eager to embrace
change, one that seeks and pursues new
ideas, and that leads the way in a crowded
retail field. We are committed to becoming
even more aggressive and creative in
identifying and serving the needs of our
fashion-oriented target customers.
We also will work to ensure that Federated
remains a stable financial performer, with
effective operations and management
continuity. Federated demonstrated this
capacity earlier this year with the long-
planned management transition under
which President Terry Lundgren assumed
CEO responsibilities, while Jim Zimmerman
remains chairman of the board.
While some businesses might fray in times
of challenge, today’s Federated is sewn
from stronger cloth – durable, flexible,
resilient in the face of change. We are
confident in our ability to overcome
obstacles and to find opportunity in doing
so. And we deeply appreciate the support of
our shareholders, customers, employees,
vendor partners and communities as we
continue to improve the department store
for all of the changing tomorrows to come.
Sincerely,
TERRY J. LUNDGREN
PRESIDENT & CHIEF EXECUTIVE OFFICER
James M. Zimmerman
Chairman of the Board
Terry J. Lundgren
President &
Chief Executive Officer
April 16, 2003
JAMES M. ZIMMERMAN
CHAIRMAN OF THE BOARD