The company is following current wary retail thinking, and isdeferring a $1 billion stock buyback plan. "Given the currentconditions in the credit markets, we are carefully evaluating ouroptions," said Karen Hoguet, CFO and EVP, during the conferencecall. "While we are optimistic about our prospects, and we believethe stock today represents a great value, we do need to balancethis with the benefits of preserving access to all financialmarkets during these volatile times."

Hoguet also said she expects same store sales to be up inNovember, with the early Thanksgiving holiday, and then down inDecember, as compared to a year ago. However, she said the companyis well-prepared for the fourth quarter. "Our inventories are ingood shape," she said. "We have a lot of newness in the stores,including the Martha Stewart Collection. The marketing for bothMacy's and Bloomingdale's is fresh and compelling, representing abalance of brand and promotional messages. We believe we have allthe ammunition in place to compete successfully through theseason."

During the third quarter, the company opened four stores andclosed one. Macy's opened stores in Northridge and Brea, CA andPortland, OR, and closed a store in Columbus. Bloomingdale's openeda store in Chevy Chase, MD. Hoguet said that there are no storeopenings planned for the fourth quarter, and she would not commenton closings during that period. The new store count planned for2008 is "around six or seven new stores," she said during the call.The company operates more than 850 department stores in 45 states,Washington DC, Guam and Puerto Rico. Prior to June 1, the companywas called Federated Department Stores Inc.