RETAILING

Federated, Woolworth Earnings Recover: The two large retailing chains reported sharp rebounds in second-quarter earnings as tight cost controls helped offset sluggish sales. Cincinnati-based Federated Department Stores Inc. posted a significantly narrowed second-quarter loss. The retailer said cost cutting and fewer markdowns helped make up for heavy costs of swallowing Broadway Stores Inc. in California. The parent of Bloomingdale’s and Macy’s reported a loss of $27.2 million, or 13 cents a share, compared with a loss of $66.9 million, or 37 cents a share, in the same period last year. Five-and-dime retailer Woolworth Corp. earned $22 million, or 17 cents a share, contrasted with a loss of $11 million, or 9 cents a share, in the second quarter of 1995. The New York-based company said its turnaround strategy of slashing expenses, getting rid of old inventory and shedding non-core businesses has paid off. The results exceeded Wall Street’s expectations of 8 cents a share.