Boston, MA 05\/29\/2014 (wallstreetpr) \u2013 Macy’s, Inc. (NYSE:M)<\/b> recently posted 1Q2014 financial results that fell short of Wall Street expectations. However, the management remains upbeat about the future and expects 2Q2014 and the balance of 2014 turn positive results.<\/p>\n
As if to drive home the confidence in Macy’s future prospects, the board approved a big share repurchase program. The company will spend $1.5 billion buyback its shares in a move that would have double or more benefits to the shareholders.<\/p>\n
First and foremost, such a big repurchase program allocation indicates that the management is convinced about the company\u2019s ability to grow its profits in the future. And as always, shares repurchase will return cash to shareholders and elevating the value of the existing shares.<\/p>\n
In addition to shares repurchase, Macy’s, Inc. (NYSE:M) also improved its dividend payout amount. In yet another display of confidence in the retailer\u2019s future performance, the board boosted the dividend by 25 percent such that the company will observe quarterly dividend of 31.25 cents.<\/p>\n
Securing Future Profits<\/b><\/p>\n
As Macy’s, Inc. (NYSE:M) looks for long-term and consisted growth in profits, the company announced layoff plans that should support cost-savings and boost future profits. The company is currently undertaking job elimination from its ranks where it seeks to do away with 1,800 positions within the shortest time possible. The layoff program is expected to lead to $100 million in cost-saving every year.<\/p>\n
The company also announced other austerity measures that would result in reduced operating expenses and improvement in profitability.<\/p>\n
Little To Celebrate About<\/b><\/p>\n
There was little to celebrate about the 1Q2014 performance at Macy’s, Inc. (NYSE:M). As much as the company tried to boost its earnings in the quarter against a year earlier period, the retailer\u2019s top-line fell short of consensus estimates. It generated revenue of $6.28 billion, yet analysts were looking for revenue of $6.46 billion for the quarter. However, the impact on the quarter was because of the harsh winter weather that kept shoppers away from stores.<\/p>\n
Macy’s, Inc. (NYSE:M) anticipates earnings between $4.40 and $4.50 per share in fiscal 2014. Analysts expect earnings of $4.46 per share in the year.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 05\/29\/2014 (wallstreetpr) \u2013 Macy’s, Inc. (NYSE:M) recently posted 1Q2014 financial results that fell short of Wall Street expectations. However, the management remains upbeat […]<\/p>\n","protected":false},"author":2,"featured_media":22718,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[2236],"tags":[2127,2120,687],"stock_ticker":[],"class_list":["post-23883","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-macys-inc-nysem","tag-macys-inc","tag-nysem","entry"],"acf":[],"yoast_head":"\n