James Zimmerman Quotations

This was a solid third quarter for Federated, propelled by strong sales and earnings in our department store segment and a level of performance in our direct-to-customer catalog and e-commerce businesses that was in line with what we had anticipated, ... We are entering the fourth quarter with our inventories in good shape, and we remain optimistic that it will be a good retail Christmas season.

Since implementation is always a wild card as China struggles to build nationwide uniformity in the legal system, there will always be concerns about inconsistent or selective application of the law.

China realizes that the world is watching and it must play fair in the implementation of the Anti-monopoly Law, ... Given the long history of state-managed enterprises and protectionism, it still is going to take time for China to fully accept cross-border mergers and acquisitions.

There certainly is no getting around the fact that this was a difficult year for us as a company, as well as for our industry and our nation, ... Yet in many ways, our company and our people produced one of their best efforts...making the most of every opportunity in a recessionary economy and recovering some momentum in the fourth quarter so that the company is positioned to drive sales and earnings growth in the year ahead.

These sales declines will result in significant markdowns, which will be booked in the third and fourth quarters,

Our direct-to-customer business results were mixed, but we think the strategic direction initiated in 1999 has Federated well positioned to capitalize on the potential of this segment, particularly in the rapidly growing e-commerce arena,

Our December department store sales were disappointing, which we think is attributable at least in part to heightened consumer concerns over a slowing economy,

Although we are only one month into the second quarter, we are concerned by the May sales trend, ... We are hopeful that more seasonably warm weather in June, combined with the boost to the economy from lower interest rates and anticipated federal tax rebates, will trigger a strengthening of sales as we move into the summer. Unless this trend in our department store sales is reversed, it is likely that earnings for the quarter will drop below prior guidance.

The Internet -- much like our global mail-order catalog businesses -- represents a strategically important complement to our department stores in an era when convenience is becoming a more important component of the value equation for customers.