3 Retailers Post Mixed Results in 3rd Quarter

May Department Stores posted a 26% third-quarter profit gain on Tuesday, but earnings for two other leading retailers--Dayton Hudson and Federated Department Stores--were down sharply from a year ago.

Dayton Hudson said its earnings fell 42.3% from the third quarter in 1985, while Federated reported a 40% profit decline.

St. Louis-based May, which was the nation’s fourth-largest retailer based on 1985 sales, said its earnings for the three months ended Nov. 1 rose to $73.6 million from $58.5 million a year earlier.

Revenue rose 10% to $2.51 billion in the quarter from $2.28 billion a year earlier.

The third-quarter results included pretax gains of $149.4 million resulting from the sale of two stores and some property. The results also included pretax charges of $174 million related to the costs of May’s merger with Associated Dry Goods and its subsequent costs to adjust inventory excesses within Associated’s divisions. The merger was approved by shareholders on Oct. 4.

May said the net effect of these unusual items was a 1-cent boost in earnings per share.

For the first nine months of the year, May reported that its earnings rose 10% to $167.8 million from $151.4 million a year earlier.

Nine-month revenue rose 9% to $7.01 billion from $6.43 billion a year earlier.

Dayton Hudson, based in Minneapolis and ranked as the nation’s fifth-largest retailer in 1985, said its third-quarter earnings fell to $32.3 million from $56.9 million a year earlier.

Third-quarter revenue was up 13% at $2.33 billion from $2.07 billion a year earlier.

For the nine months ended Nov. 1, Dayton Hudson said its earnings fell 16.9% to $107.6 million from $130.3 million a year earlier.

Revenue for the nine months rose 11% to $6.50 billion from $5.85 billion a year earlier.

Federated, based in Cincinnati and the nation’s seventh-largest retailer in 1985, said its net income for the third quarter fell to $34.5 million from $57.5 million.

Third-quarter revenue rose 5.9% to $2.51 billion from $2.37 billion a year earlier.

For the latest nine months, Federated said its profit fell 12.8% to $116.3 million, compared to $132.6 million a year earlier.

Nine-month revenue rose 4.7% to $7.07 billion from $6.75 billion.