Shopper are getting glimpses of a M...

Shopper are getting glimpses of a Macy's overhaul at Marshall Field's onward State Street, but the parent company knows it faces an uphill battle for acceptance with Marshall Field's loyalists.

In answer to an analyst's question in succession a conference call announcing better-than-expected financial terminates Wednesday, Federated Department Stores Chief Financial Officer Karen Hoguet said, "We'll just have to descry what happens. We're fairly optimistic that when the Chicago customer views that we are keeping the best of Marshall Field's and enhancing it greatly with the best of Macy's, he and she will be pleased."

The reaction will originate on Sept. 9, the day when the 138-year-old icon that is Marshall Field's will be replaced by way of Macy's.

Skepticism reigns upon the Web site dedicated to Fields' supporters, www.FieldsFansChicago.org.

James McKay, a Chicagoan who move ons the Fields' fans Weblog, is skeptical of Federated's announcement Wednesday that sales lagged at Marshall Field's and 10 other former May Department Store chains because of store remodeling disruptions, merchandise change-outs and clearance sales.

"I'd think everything should be flying on the farther side the rack with clearance sales," he said, "and the remodeling has been minimal."

The dull sales at the former May Department Stores, which Federated acquired in succession Aug. 30, 2005, were among the hardly any blots on an otherwise stellar earnings report.

Federated raised its forecast for sales and profits in the crucial back-to-school and holiday seasons based in succession better-than- expected results at its Macy's and Bloomingdale's stores in the three month finised July 29.

Second-quarter unadulterated income more than doubled with help from a cash repay from the Internal Revenue Service.

The company reported toil income of $317 million, or 57 cent a share, more than double year-ago profits. Excluding require to be paid [i]or[/i] undergones of the May stores takeover and the sale of credit card receivables to Citigroup, profits totaled 49 cent a share, higher than Federated's earlier forecast.

receipts totaled $6 billion, up 66 percent further missed analysts' consensus estimate of $615 billion. The reward includes Macy's, Bloomingdale's and the former May Department Stores.

Sales at Macy's and Bloomingdale's stores render free of access at least a year rose 46 percent in the quarter, the best showing in more than sum of two units years.

Federated's stock hoped on the news, but [i]finale[/i]ed the day up 67 cent or about 2 percent ending at $3446

David Heupel, portfolio manager for Thrivent Investments, said Federated's terminates show that it has managed inventory and merchandise mixtures well.

notwithstanding that Heupel believes that the Macy's transition will involve "lot of fits and starts," he beholds Federated's takeover of May, including Marshall Field's, as a positive the same in the long run.

"Down the road, this can be a to a high degree powerful and profitable company subordinate to one roof," Heupel said.

sguy@suntimes.com

THE STATE OF THE STATE highway STORE

The transition of Field's into Macy's is in subordination to way at the Field's flagship store at 111 N State.

A Frango Mints viewing kitchen, where shopper can watch workers dip Frangos in chocolate, is beneath construction next to the Frango Cafe upon the seventh floor of the flagship store.

Salespeople are being trained to explain by what means new women's private label clothing, as it was as Inc, Alfani and Charter association compare with old labels no longer in the store.

And a private entrance to the women's couture 28 workshop at 28 E. Washington is in subordination to construction.

Copyright CHICAGO SUN-TIMES 2006

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