The company repurchased approximately 7.4 million shares of its common stock for a total of approximately $432 million in the first quarter of 2014.
Macy’s, Inc.’s board of directors has authorized an increase in the quarterly dividend on Macy’s common stock to 31.25 cents per share from the current 25 cents per share. The new dividend will be payable on July 1, 2014, to shareholders of record at the close of business on June 13, 2014.
This represents the fourth increase in the dividend in the past three years. Over that period, the quarterly dividend has increased more than six-fold from 5 cents per share to 31.25 cents per share.
Increased Share Repurchase Authorization
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 3, 2014, after giving effect to this increase, to approximately $2.5 billion, which the company can use to purchase common shares from time to time 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 93 million shares for approximately $3.9 billion through May 3, 2014.
The company continues to expect comparable sales growth in fiscal 2014 in the range of 2.5 percent to 3 percent. The company also reiterated its guidance for earnings per diluted share in fiscal 2014 of $4.40 to $4.50.
Macy’s, Inc., with corporate offices in Cincinnati and New York, is one of the nation’s premier retailers, with fiscal 2013 sales of $27.931 billion. The company operates about 840 stores in 45 states, the District of Columbia, Guam and Puerto Rico under the names of Macy’s and Bloomingdale’s. The company also operates 13 Bloomingdale’s Outlet stores. Bloomingdale’s in Dubai is operated by Al Tayer Group LLC under a license agreement.