NEW YORK – Macy’s Inc. is dominating its competition and bouncing back from the recession by doing many little things well: adding local flavor to its stores, snagging hit exclusives like Madonna’s clothing line and keeping its own costs under control.
All that contributed to soaring first-quarter earnings that crushed Wall Street forecasts, a boosted outlook and doubling the dividend it pays shareholders. Macy’s stock price rose nearly 8 percent Wednesday.
The department store’s results are among the first in a pile of retail earnings reports over the next two weeks. They could put more pressure on competitors like Kohl’s Corp. and J.C. Penney Co., both of which cater to shoppers on tighter budgets and are consequently more vulnerable to escalating costs of household basics.
While consumer spending has picked up speed since late last year, middle- to lower-income shoppers are still cautious, fueling an intense battle among merchants for their dollars.
Macy’s Chief Financial Officer Karen Hoguet acknowledged higher gas prices and other issues are starting to make the overall environment more challenging but she said Macy’s would continue to outshine its rivals.
“The momentum … is building and bodes very well for our future,” Hoguet said on a conference call with investors. “There
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