NEW YORK (AP) — Macy’s says its first-quarter profit rose 3.2 percent, but the department store chain’s sales fell short of expectations as a tough economy and a cool spring dampened shoppers’ appetite for shorts and T-shirts.
However, Macy’s Inc. is sticking with its full-year profit outlook, citing improving business trends. It also raised its dividend by 25 percent.
Macy’s said Tuesday that it earned $224 million, or 60 cents per share, in the quarter that ended May 3. That compares with $217 million, or 55 cents per share, a year earlier.
Revenue slipped 1.7 percent to $6.28 billion.
Analysts expected a profit of 59 cents on revenue of $6.46 billion.
Revenue at stores open at least a year fell 0.8 percent.