Macy's Profit Misses Estimates on Strong Dollar, Port Strike

NEW YORK, United States — Macy's Inc reported a lower-than-expected quarterly profit due to a strong dollar that hurt foreign tourist spending in the United States, colder-than-usual weather in February and disruptions at West Coast ports that held up imports.

The company's shares were down 2.4 percent at $63.75 in premarket trading on Wednesday.

Macy's, which operates the upscale Bloomingdale's chain as well as its namesake stores, also said it increased its share repurchase program by $1.5 billion, bringing the total outstanding authorization to about $2.1 billion.

It raised its quarterly dividend to 36 cents per share from 31.25 cents.

Same-store sales, including licensed departments, fell 0.1 percent. Analysts were expecting it to rise 1 percent, according to research firm Consensus Metrix.

The department store operator's net income fell to $193 million, or 56 cents per share, in the first quarter ended May 2 from $224 million, or 60 cents per share, a year earlier.

Net sales fell 0.7 percent to $6.23 billion.

Analysts on average had expected earnings of 62 cents per share on revenue of $6.32 billion, according to Thomson Reuters I/B/E/S.

Macy's said in February that about 12 percent of its first-quarter merchandise was being delayed due to the strike in West Coast ports.

Up to Tuesday's close, the company's shares had gained 14 percent in the last 12 months.

By Ramkumar Iyer, Sruthi Ramakrishnan; editors: Kirti Pandey, Don Sebastian.