This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Macy's Shares Surge on Earnings Beat

Stock quotes in this article: M, JCP, TGT, TJX

NEW YORK ( TheStreet) -- Macy's (M) shares were rising Wednesday on strong volume after the department store kicked off first-quarter earnings reports with better-than-expected earnings and announced a dividend increase.

The Cincinnati-based company said net income was $217 million for the 13-week quarter, or 55 cents per diluted share versus $181 million, or 43 cents in the same period last year. Analysts on average expected Macy's to post quarterly earnings of 53 cents a share.

First-quarter sales for the period totaled $6.39 billion, up 4% from the same period last year. Comparable stores sales, which includes stores open at least one year as well as e-commerce sales form Macys.com and Bloomingdales.com, rose by 3.8% from the first quarter last year, Macy's said.

Macy's stock jumped 3.2% shortly after the stock markets opened. The stock has since retreated, but still in positive territory, up 1% to $47.89. More than 5 million shares had already traded hands -- surpassing the stock's average daily trading.


Macy's said based on the positive momentum in its 840-store and online businesses as well as its "confidence in our future performance," it was raising its common stock dividend by 25% -- its third increase in the dividend in two years -- and authorizing a $1.5 billion increase in its share repurchase authorization.

"The first quarter demonstrated our ability to continue to build on our success over the past few years in growing sales and earnings," Macy's chairman, president and CEO Terry J. Lundgren, said in the earnings release.

Macy's was able to deliver the earnings beat despite the cool spring weather, particularly in the Northeast -- a factor that other retailers, including JC Penney (JCP) and Target (TGT) have already warned would hinder quarterly sales.


Still Lundgren noted that Macy's saw consumer weakness in the quarter "among some of the most budget-conscious consumers, as well as among our higher household income Bloomingdale's customers."

"We are continuing to pursue myriad new growth opportunities within our time-tested M.O.M. strategies (My Macy's, Omnichannel and Magic Selling). These strategies continue to work individually -- and in unison -- at Macy's to meet the needs of customers seeking fashion, quality, value and convenience," Lundgren said.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,795.62 -9.09 -0.05%
S&P 500 1,946.64 +0.48 0.02%
NASDAQ 4,426.1210 +4.0360 0.09%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs