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Macy’s Reports Solid Q1 Earnings- Stock Rising

On Wednesday, Macy’s (NYSE: M) reported strong Q1 earnings sending the stock up nearly 3 percent in early trading. According to Bloomberg, the company reported a a 20 percent year over year increase in first quarter profits despite cool weather and winter weather than included major snow storms well into April.

Additionally, the company announced that it was raising its dividend to 25 cents from 20 cents. The dividend will be paid on July 1 to shareholders of record on June 14. If that wasn’t enough, the company will buy back $1.5 million in stock.

The internals of the report were strong as well. Revenue at stores open one year or more rose 3.8 percent.

“We are especially pleased with our first-quarter sales and earnings performance given the challenges we overcame in this period,” Terry Lundgren, chairman, president and CEO of Macy’s, said in a statement.

Macy’s has proven its resiliency. Over the past year, the stock is up more than 28 percent and continues to print fresh 52 week highs. Technically, the chart continues to signal higher highs going forward. In light of today’s earnings, a continued or new long position in the stock is supported both technically and fundamentally.

 Disclosure: At the time of this writing, Tim Parker had no position in any of the stocks mentioned.

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