CINCINNATI–(BUSINESS WIRE)–Macy’s, Inc.’s (NYSE:M) board of directors today announced actions to
enhance the company’s shareholder returns through an increase of $1.5
billion in share repurchase authorization and its intent to increase the
July dividend by 5 percent. The company also is declaring a regular
“Our company continues to generate significant cash flow. We are
committed to enhancing shareholder value, in part, through dividends and
share repurchases while simultaneously returning our leverage ratio to
within our targeted range of 2.5 to 2.8,” said Terry J. Lundgren,
chairman and chief executive officer of Macy’s, Inc.
Increased Share Repurchase Authorization
The board has increased the company’s share repurchase authorization by
$1.5 billion. After giving effect to this increase, the remaining
authorization outstanding, as of the end of the 2015 fourth quarter on
Jan. 30, 2016, is approximately $2 billion. The company can use the
authorization to purchase common shares in the open market, in privately
negotiated transactions or otherwise at any time and from time to time
without prior notice.
Since resuming its share repurchase program in August 2011, Macy’s, Inc.
has bought back approximately 152.2 million shares for approximately
$7.3 billion through Jan. 30, 2016.
April Dividend Declared
The board today declared a regular quarterly dividend of 36 cents per
share on Macy’s common stock, payable April 1, 2016, to shareholders of
record at the close of business on March 15, 2016.
July Dividend Increase
Macy’s, Inc.’s board also announced its intent to increase the quarterly
dividend on Macy’s common stock to 37.75 cents per share from the
current 36 cents per share, effective with the July 1 dividend payment.
The record date for the July dividend, which the board will set at a
future time, is expected to be on or about June 15, 2016.
The July dividend will be the sixth increase in the past five years and
represents a more than seven-fold increase from 5 cents per share in
2009 to 37.75 cents per share.
Macy’s, Inc., with corporate offices in Cincinnati and New York, is one
of the nation’s premier retailers, with fiscal 2015 sales of $27.079
billion. The company operates about 870 stores in 45 states, the
District of Columbia, Guam and Puerto Rico under the names of Macy’s,
Bloomingdale’s, Bloomingdale’s Outlet, Macy’s Backstage and Bluemercury,
as well as the macys.com, bloomingdales.com and bluemercury.com
websites. Bloomingdale’s in Dubai is operated by Al Tayer Group LLC
under a license agreement.
All statements in this press release that are not statements of
historical fact are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Such statements are
based upon the current beliefs and expectations of Macy’s management and
are subject to significant risks and uncertainties. Actual results could
differ materially from those expressed in or implied by the
forward-looking statements contained in this release because of a
variety of factors, including conditions to, or changes in the timing
of, proposed transactions, prevailing interest rates and non-recurring
charges, competitive pressures from specialty stores, general
merchandise stores, off-price and discount stores, manufacturers’
outlets, the Internet, mail-order catalogs and television shopping and
general consumer spending levels, including the impact of the
availability and level of consumer debt, the effect of weather, the
timing and amount of repurchases of Macy’s, Inc. common shares, if any,
changes to Macy’s, Inc.’s expected liquidity position, the possibility
that the repurchase program may be suspended or discontinued, final
board approval of the July dividend, and other factors identified in
documents filed by the company with the Securities and Exchange
Commission. In light of these risks and uncertainties, readers are
cautioned not to place undue reliance on forward-looking statements.
Except as may be required by applicable law, Macy’s disclaims any
obligation to update its forward-looking statements for any reason.
(NOTE: Additional information on Macy’s, Inc., including past news
releases, is available at www.macysinc.com/pressroom)
Media – Jim Sluzewski, 513-579-7764
– Matt Stautberg, 513-579-7780