) - one of the leading department store retailers in the U.S. -
hiked its share repurchase program by $1.5 billion, bringing the
total authorization outstanding to $1.861 billion.
During the first-nine months of fiscal 2012, Macy's bought
back approximately 26.3 million shares aggregating $991 million.
The company had share repurchase authorization worth
approximately $361 million remaining at its disposal as of
October 27, 2012.
Since the inception of the share repurchase program in August
2011, Macy's repurchased 42.6 million shares for a total
investment of $1.491 billion.
The company has been actively managing its cash flows,
returning much of its free cash to shareholders via share
repurchases and dividends, while maintaining a healthy balance
sheet and credit ratios that are crucial for an investment-grade
We appreciate Macy's efforts to boost long-term shareholders'
value and believe that the recent announcement affirms the
company's positive outlook and reflects its confidence in its
fundamentals. The share repurchases and strategies for increasing
dividend not only enhance shareholders' return but also raise the
market value of the stock.
Further, Macy's has been taking a number of initiatives in
order to bolster its sales, profitability and cash flows. These
steps include integration of operations, consolidation of
divisions as well as developing e-commerce business and online
order fulfillment centers.
We remain optimistic about the company's customer-centric
localization initiative called "My Macy's." The program aims at
improving comparable-store sales and reducing operating expenses,
with stores and merchandise assortments focusing on local
customer needs and preferences.
Macy's, which competes with
J. C. Penney Company Inc
), currently operates approximately 840 department stores in 45
states, the District of Columbia, Guam and Puerto Rico.
Currently, we have a long-term 'Neutral' recommendation on the
stock. Moreover, Macy's holds a Zacks #3 Rank that translates
into a short-term 'Hold' rating.
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