Macy's reported earnings of 56 cents per diluted share for the first quarter of 2015 ended May 2, 2015, compared with earnings of 60 cents per diluted share in Q1 2014.
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The company also announced a 15 percent increase in its dividend on common stock and a $1.5 billion increase in its share repurchase authorization.
Sales in the first quarter of 2015 totaled $6.232 billion, a decrease of 0.7 percent, compared with sales of $6.279 billion in the same period last year. Comparable sales on an owned plus licensed basis were down by 0.1 percent in the first quarter. On an owned basis, first quarter comparable sales declined by 0.7 percent.
Since February 1, 2015, four new Bluemercury stores have opened.
Macy's, Inc.'s operating income totaled $409 million or 6.6 percent of sales for the first quarter of 2015, compared with $443 million or 7.1 percent of sales for the same period in 2014.
Net cash provided by operating activities was $53 million in the first quarter of 2015, compared with $174 million in the first quarter last year. Net cash used by investing activities in the first quarter of 2015 was $381 million, compared with $184 million a year ago.
Investing activities in the first quarter of 2015 included the acquisition of Bluemercury. Net cash used by financing activities in the first quarter of 2015 was $409 million, compared with $385 million last year.
The company repurchased approximately 5.9 million shares of its common stock for a total of approximately $385 million in the first quarter of 2015.
Macy's, Inc.'s board of directors has authorized an increase in the quarterly dividend on Macy's common stock to 36 cents per share from the current 31.25 cents per share. The new dividend will be payable July 1, 2015, to shareholders of record at the close of business on June 15, 2015.
This represents the fifth increase in the dividend in the past four years. Over that period, the quarterly dividend has increased more than seven-fold from 5 cents per share to 36 cents per share.
The board also has increased the company's share repurchase authorization by $1.5 billion.
This brings the remaining authorization outstanding, as of the end of the first quarter on May 2, 2015, after giving effect to this increase, to approximately $2.1 billion, which the company can use to purchase common shares in the open market, in privately negotiated transactions or otherwise at any time and from time to time without prior notice.
Since resuming its share repurchase program in August 2011, Macy's, Inc. had bought back approximately 123.3 million shares for approximately $5.7 billion through May 2, 2015.
Macy's, Inc. continues to expect comparable sales growth on an owned plus licensed basis of approximately 2 percent in fiscal 2015, with comparable sales slightly lower on an owned basis.
The company continues to expect total sales growth of approximately 1 percent in 2015. The company also reiterated its guidance for earnings per diluted share in fiscal 2015 of $4.70 to $4.80.
In fiscal 2015, as previously announced, the company expects to open a new Macy's store in Ponce, PR, a Bloomingdale's in Honolulu, HI, a new Bloomingdale's Outlet store in Manhattan, four Macy's Backstage off-price stores in the New York metro area, and a total of 18 Bluemercury locations (including four opened in the first quarter).
For fiscal 2016, a new Macy's store has been announced for opening in Kapolei, HI, along with a replacement Macy's store in Los Angeles, CA. Announced new stores for fiscal 2017 include new Macy's and Bloomingdale's in Miami, FL, and a new Bloomingdale's in San Jose, CA. In 2018, a new Bloomingdale's is scheduled to open in Norwalk, CT.
In addition, new Macy's and Bloomingdale's stores are planning to open in Abu Dhabi, United Arab Emirates, in 2018 under license agreements with Al Tayer Group. ■