Macy’s 1Q earnings soar

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Macy’s Inc.’s first-quarter earnings soared because of rising revenue, tight expense controls and its efforts to tailor merchandise by region.

The department store chain also said Wednesday that it is doubling its quarterly dividend and raising its full-year earnings and sales outlook.

Macy’s reported net income of $131 million, or 30 cents per share, in the three months ended April 30. That compares with $23 million, or 5 cents per share, in the same quarter last year.

Revenue reached $5.88 billion, up 5.7 percent.

Revenue at stores open at least a year rose 5.4 percent. The measure is a key indicator of a retailer’s health because it excludes stores that opened or closed during the year.

Analysts expected earnings of 18 cents on revenue of $5.89 billion, according to FactSet.

“We are building a culture of growth at Macy’s,” Terry J. Lundgren, chairman, president and CEO, said in a statement. “Our performance cannot be attributed to a single factor, but rather to the coordinated execution of a series of complementary … strategies.”

Macy’s has taken business from competitors in part by tailoring stock in each store to its region and by placing more emphasis on exclusive brands such as Material Girl from Madonna and her daughter Lourdes. The company gets about 43 percent of its revenue from private, exclusive and limited-distribution brands.