BUSINESS MEMO: MAY DEPARTMENT STORES REPORTS THAT EARNINGS UP

ST. LOUIS -- May Department Stores Inc. has reported a 14.4 percent drop in net earnings after the spin-off of its Payless ShoeSource chain.

But for continuing operations, the St. Louis-based retailer's earnings rose 7.3 percent compared to a year ago.

For the period ending Nov. 2, May earned $118 million, or 44 cents per share, compared to $135 million, or 50 cents per share in 1995.

Sales dropped to $2.77 billion, down from $3.08 billion in 1995. But without Payless, department store sales rose 11.6 percent from $2.48 billion a year ago.

May operates eight department store chains. The company opened five new stores during the quarter -- a Lord & Taylor store in Maryland, another in Virginia; a Foley's in Texas; a Kaufmann's in Ohio; and a Famous-Barr in Indiana.

So far this year, May has opened 24 new stores. It now operates 364 department stores in 30 states and the District of Columbia.