According to the department store giant, sales in Q3 totaledabout $3.49 billion, an increase of 0.2% compared to sales of about$3.48 billion in the same period last year. For the year-to-date,Federated's sales totaled about $10.55 billion, an increase of 3.4%from sales of about $10.21 billion in the same period last year. Ona same-store basis, Federated's third quarter sales were up 0.4%,and its sales for the first 39 weeks of 2004 were up 3.4%.

Diluted earnings per share totaled $0.42 for the third quarter,compared to earnings of $0.36 in the same 13-week period last year.For the first three quarters of 2004, Federated reports earningsper share of $1.38, besting the $1.25 per share total in the sameperiod of 2003.

"In October, we experienced more post-hurricane rebound inFlorida than expected, but not enough to offset the negative impactin September," said Karen M. Hoguet, SVP and CFO of Federated,during its earnings conference call this week. "Apart from thehurricanes, however, the trend improved throughout the quarter.October sales were consistent with original expectations, and inspite of the added costs associated with the hurricanes, we wereable to bring in expenses lower than we expected."