Macy's profit rises but revenue slips

Macy's said first quarter net income rose 3% from a year ago as the retailer lowered its cost of sales.

Its net income totaled $224 million, up from $217 million a year ago. Earnings per share of 60 cents beat analysts' estimates of 59 cents.

Sales for the 13-week period ending May 3 fell 1.7% from a year ago to $6.28 billion as the company attributed bad weather for lower demand. Comparable-store sales fell 1.6% in the quarter.

"Overall, business trends were soft in January through March, with the exception of the Valentine's Day shopping period," said CEO Terry J. 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."

Shares were up 0.2% midday Wednesday to $57.96.

For fiscal 2014, Macy's, which operates about 840 stores nationwide, expects comparable sales to grow in the range of 2.5% to 3%. "We continue to have a positive outlook for 2014 and are reaffirming the full-year guidance we provided in January," Lundgren said. "The fundamentals of our business and our ongoing strategies remain strong."

Macy's board of directors approved an increase of the company's dividend on common stock by 25% to 31.25 cents per share, payable on July 1.