May 15, 2013
Macy's profit and same-store sales up and so are dividends
May 15, 2013
The retailer, which operates the Macy's and Bloomingdale's chains, said comparable sales rose 3.8 percent, below the 4.3 percent jump analysts were expecting, according to Thomson Reuters I/B/E/S. Overall sales were in line with projections, increasing 4 percent to $6.39 billion.
Macy's has benefited from large investments in technology, which have allowed it to use its stores to deliver orders placed online, fueling its e-commerce. It has also benefited from a sharp sales decline at rival J.C. Penney Co and a middling performance at Kohl's Corp.
Still, Macy's Chief Executive Terry Lundgren said the company saw "weakness" in parts of its clientele, including among its more affluent customers.
U.S. retail sales in April were dented by cool weather in large parts of the country that prompted many consumers to delay spring shopping.
Macy's posted net income of $217 million, or 55 cents share, for the quarter that ended May 4, up from $181 million, or 43 cents per share, a year earlier, and topping analysts' average forecast by 2 cents.
Despite the higher-than-expected profit, Macy's stood by its previous forecast for earnings of $3.90 to $3.95 a share for the full year, and a same-store sales rise of 3.5 percent.
The company boosted its quarterly dividend to 25 cents a share from 20 cents and increased its share repurchase authorization by $1.5 billion.
Macy's shares were up 2.7 percent to $48.65 in premarket trading. On Tuesday, the shares hit their highest levels in decades.
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