NEW YORK (AP) — Macy's Inc. reported a 20 percent increase in first-quarter profit even though cool temperatures and economic worries dampened some of its shoppers' spending on spring clothes.
The company, which also operates the upscale chain Bloomingdale's, is also raising its dividend to 25 cents from the current 20 cents. It also announced an additional $1.5 billion in stock buybacks.
Macy's, a standout among its peers throughout the economic recovery, is the first of the major retailers to report first-quarter results that should provide insight into Americans' mindset heading into the summer season. The latest results show that while the job market is improving and housing market is recovering, Macy's and others that cater to middle-income shoppers still face hurdles.
"We are especially pleased with our first-quarter sales and earnings performance given the challenges we overcame in this period," Terry Lundgren, chairman, president and CEO of Macy's, said in a statement.
