Federated Department Stores came in with only a 1.5 percent sales increase, and Saks Holdings said sales fell 3.3 percent.

Shares of Saks Holdings, which surged on Wednesday, their first day of trading, reteated 2 1/8 yesterday, to 32 1/2.

Proffitt's merged with Saks Holdings, owner of Saks Fifth Avenue, in 1998.

Other retailers, like Saks Holdings and Gap, also said their results improved.

Saks Holdings declined to improve on the $290 million it offered in April, adding that it thought its bid was now too high anyway.

Kohl's, which sells less expensive merchandise, said sales rose 10.4 percent, and Saks Holdings said sales rose 9.9 percent.

It and its affiliates own 18 percent of Saks Holdings, and they hold 27 percent more for clients.

Before acquiring Saks Holdings and changing its name, Proffitt's was an industry leader in buying businesses at a rapid pace and making them profitable.

At Saks Holdings' Saks Fifth Avenue, executives have been boasting about strong cashmere sales for weeks.