Macy's Q1 Profit Rises, Backs FY13 Outlook; Boosts Dividend By 25% - Quick Facts

Macy's Inc. (M) reported that its first-quarter net income increased to $217 million or $0.55 per share, from $181 million or $0.43 per share in the same quarter last year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.53 per share for the quarter. Analysts' estimates typically exclude special items.

Sales in the first quarter of 2013 totaled $6.387 billion, an increase of 4.0 percent, compared with sales of $6.143 billion in the same period last year. Comparable sales grew by 3.8 percent from the first quarter last year. Fifteen analysts had consensus revenue estimate of $6.39 billion for the quarter.

The company said its board has authorized an increase in the quarterly dividend on common stock to $0.25 per share from the current $0.20 per share. The new dividend will be payable July 1, 2013, to shareholders of record at the close of business on June 14, 2013.

The board also has increased the company's share repurchase authorization by $1.5 billion. This brings the remaining authorization outstanding, as of the end of the first quarter on May 4, 2013, after giving effect to this increase, to approximately $2.6 billion.

Since resuming its share repurchase program in August 2011, Macy's had bought back approximately 60.3 million shares for approximately $2.2 billion through May 4, 2013.

The company continues to expect comparable sales to grow by approximately 3.5 percent in 2013. The company also reiterated its guidance for earnings per share in fiscal 2013 of $3.90 to $3.95. Analysts expect the company to report earnings of $3.92 per share on revenues of $28.35 billion for fiscal 2013.

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