Macy's sticks to 2014 forecast as sales pick up after hard winter

Macy's also raised its dividend and increased its share buyback program, helping to push up the company's shares 1.2 percent in trading before the bell on Wednesday.

"The (weak business trend) improved in April when the weather began to turn in northern climate zones. We see this as a good sign moving forward into the second quarter," Chief Executive Terry Lundgren said in a statement.

Macy's, which also owns the high-end Bloomingdale's chain, reaffirmed its earnings forecast of $4.40-$4.50 per share for the year. Analysts on average expect a profit of $4.48 per share, according to Thomson Reuters I/B/E/S.

The company raised its dividend to 31.25 cents per share from 25 cents and said its board had authorized a $1.5 billion increase in its share buyback program.

Net income rose to $224 million, or 60 cents per share, in the three months to May 3 from $217 million, or 55 cents per share a year earlier. Revenue fell to $6.28 billion from $6.39 billion.

Analysts on average had expected a profit of 59 cents per share, on revenue of $6.46 billion.

Comparable-store sales fell 1.6 percent. Analysts polled by Consensus Metrix had expected a rise of 1.30 percent.

Up to Tuesday's close, Macy's shares had risen 8.3 percent this year. The stock was trading at $58.68 before the bell.

(Reporting by Maria Ajit Thomas in Bangalore; Editing by Kirti Pandey and Ted Kerr)

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