Macy's Q1 earnings up 9 percent

REPORT_ Macy's reported earnings of 60 cents per diluted share for the first quarter of 2014, the 13-week period ended May 3, 2014,

an increase of 9 percent compared with earnings of 55 cents per diluted share in the first quarter of 2013. Based on expectations for continued strong performance in 2014, the company also announced a 25 percent increase in its dividend on common stock and a 1.5 billion dollars increase in its share repurchase authorization.

“Overall, business trends were soft in January through March, with the exception of the Valentine's Day shopping period. The trend improved in April when the weather began to turn in northern climate zones. We see this as a good sign moving forward into the second quarter,” said Terry J. Lundgren, Macy's Chairman and Chief Executive Officer.

Sales in the first quarter of 2014 totaled 6.279 billion dollars, a decrease of 1.7 percent, compared with sales of 6.387 billion dollars in the same period last year. On a comparable sales basis, Macy's first quarter sales were down 1.6 percent in 2014 compared with 2013. Together with sales from departments licensed to third parties, first quarter 2014 sales on a comparable basis were down 0.8 percent.

Cincinnati headquartered Macy's operating income totaled 7.1 percent of sales for the first quarter of 2014, compared with 6.8 percent of sales for the same period in 2013. This represents a 30 basis point increase in operating income as percent to sales. Company’s board of directors has authorized an increase in the quarterly dividend on Macy's common stock to 31.25 cents per share from the current 25 cents per share.

The company continues to expect comparable sales growth in fiscal 2014 in the range of 2.5 percent to 3 percent. The company also reiterated its guidance for earnings per diluted share in fiscal 2014 of 4.40 dollars to 4.50 dollars.