Ligne Material Girl de Madonna: Macy's double sa dividende annuelle.
Little touches send Macy's shares soaring
Macy'$ beats street, shares soar 7%
By JAMES COVERT
Last Updated: 3:13 AM, May 12, 2011
Posted: 1:04 AM, May 12, 2011
Macy's has set the bar high as earnings season cranks up for retailers.
Shares of the department-store giant rose to their highest levels since before the Wall Street crisis after the company's first-quarter profit surged more than fivefold.
Citing strong cost controls, stores that better cater to local fashion tastes and exclusive clothing lines from celebrities like Madonna, Macy's raised its full-year profit outlook and doubled its annual dividend.
While analysts have fretted that soaring cotton prices will squeeze retailers' margins, Macy's CFO Karen Hoguet said shoppers thus far appear willing to pay slightly higher prices to offset those costs.
"I think the concerns about price inflation have been overstated," Hoguet said, although she added that the costs will likely keep gross margins flat for the year.
Macy's shares surged $2.03, or 7.7 percent, to close yesterday at $28.36 -- their highest level in more than three years.
For the quarter ended April 30, Macy's reported a profit of $131 million, or 30 cents a share, up from $23 million, or 5 cents, a year earlier. Sales rose 5.7 percent to $5.89 billion.
Analysts had forecast earnings of 18 cents a share on revenue of $5.86 billion.