FEDERATED'S LUNDGREN EXPECTS ECONOMY TO IMPROVE LATER IN '03.(Federated Department Stores' CEO Terry Lundgren)

CINCINNATI -- Federated Department Stores is getting plenty of opportunities to make excuses for its poor sales performance. CEO Terry Lundgren, however, isn't using them.

The war, poor economy and anemic financial markets "are all external issues," said Lundgren during a press lunch following the company's annual meeting on May 16. "Those issues will resolve themselves one way or another. My view is when those external issues are improving, we will benefit from that."

Lundgren also said he didn't expect the economy to improve until later this year, but that it will improve. Despite reporting earlier that first-quarter comps fell 5 percent against a year …