Macy’s Q1 financial results are out, and the numbers are mixed.
Comparable store sales unexpectedly fell by 1.6%. Analysts were looking for a 1.3% gain.
Earnings climbed to $US0.60 per share, which was right in line with analysts’ estimates. This was up from $US0.55 a year ago.
Shares initially dropped in premarket trading, but have since recovered losses.
“Overall, business trends were soft in January through March, with the exception of the Valentine’s Day shopping period,” said CEO Terry Lundgren. “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.”
Management reiterated its expectation for 2.5% to 3% comparable store sales growth for the full year. It’s also sticking to its full year earnings guidance of $US4.40 to $US4.50 per share.
The board also approved a 25% boost in the company’s quarterly cash dividend, which has been raised to $US0.3125 from $US0.25. The share buyback authorization has been increased by $US1.5 billion, which brings the current total remaining authorization to around $US2.5 billion.
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