On Wednesday, Macy’s (M) posted first-quarter earnings that narrowly topped estimates and said it will increase its dividend and repurchase more shares.
During the first quarter, M reported net income of $224 million, up 3.2% from the prior-year period. EPS came in at 60 cents, beating the 59 cents that Wall Street had anticipated, Reuters noted.
Revenue of $6.28 billion was down 1.7% from the year-ago period and fell short of the $6.46 billion that analysts had predicted. Same store sales sank 1.6% during the quarter, slightly worse than the 1.3% dip analysts had estimated. M blamed the first-quarter sales decline on harsh weather in the U.S. during the first part of the year, but said sales began to improve in April.
Macy’s said it will boost its dividend from 25 cents t0 31.25 cents per M share. The iconic retailer also announced plans to purchase another $1.5 billion in M stock, raising its total share repurchase program to $2.5 billion.
The news sent M stock up more than 1% in Wednesday morning trading. Macy’s stock closed at $57.84 per share on Tuesday.
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