Federated Reports $27.7 Million Profit

Federated Department Stores Inc. said Wednesday it earned $27.7 million, or 13 cents a share, in the second quarter, reversing a year-earlier loss that was due to acquisition-related costs.

Federated reported it had a strong comeback in sales after a slow weather-related start to the quarter. An unexpectedly cool spring and early summer depressed sales for many retailers.

Federated lost $27.2 million, or 13 cents a share, in the same quarter last year.

Sales rose 5.1 percent to $3.45 billion from $3.28 billion. Sales from stores open at least a year - a widely-accepted measure of a retailer’s strength - were up 4.4 percent.

The company’s earnings in the latest quarter were reduced by a $38.7 million charge due to the retirement of debt. The loss in the second quarter of 1996 was due largely to the costs of integrating Broadway Stores Inc. into Federated’s existing store chains.