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Macy’s profit rises 20 percent on solid sales

Macy’s Inc. has announced th2500 jobs will be lost restructuring plan.. | AP file photo

Macy’s Inc. has announced that 2,500 jobs will be lost in restructuring plan.. | AP file photo

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NEW YORK — Macy’s Inc. is reporting a 20 percent increase in first-quarter profit as the department store chain saw solid sales despite cool temperatures that dampened shoppers’ appetite for spring clothes.

The company, which also operates the upscale chain Bloomingdale’s, is also raising its dividend to 25 cents from the current 20 cents. It also announced an additional $1.5 billion in stock buybacks.

Macy’s, based in Cincinnati, says it earned $217 million, or 55 cents per share in the quarter ended May 4. That compares with $181 million, or 43 cents per share, a year ago.

Revenue rose 4 percent to $6.38 billion.

Analysts expected earnings of 53 cents per share on revenue of $6.4 billion.

Macy’s shares rose 46 cents to $47.85 in premarket trading.

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