Federated's same-store sales, inching up 1.1%, were also above the single-digit drop executives expected the chains to post. Total sales were nearly $9.6 billion, up 86.9%, mainly due to the $11-billion May acquisition it closed in August, making it the largest department-store chain in the country with about 850 units.

The company's Florida Macy's stores and Bloomingdales chains were the most successful during the quarter, says Karen Hoguet, Federated's chief financial officer. However, five units in Florida and one in New Orleans remain closed due to hurricane damages.

Company officials also announced the hiring of Anne MacDonald as chief marketing officer. "We believe that we need to take our marketing to a brand new level," as Macy's becomes a national chain, Hoguet says. MacDonald is joining Federated from Citibank, where she serves as chief marketing officer of the company's global consumer group.

For the first quarter, executives are forecasting a 0.5% to 1.5% same-store sales increase, on first-quarter revenues of $5.75 billion to $6 billion. For the full year, same-store sales between 2% to 3% are targeted and earnings per share from $3.45 to $3.70 are anticipated.