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Macy's share buyback authorization increases

CINCINNATI (AP) -- Macy's Inc. says its board has increased its share repurchase authorization by $1.5 billion.

The department store operator said Friday that the increase brings the total approved to buy back shares to $1.86 billion.

Macy's CEO Terry Lundgren said that the company is committed to using its excess cash in improve shareholder value through buybacks and dividends and the decision reflects the strength of the company's business.

The retailer resumed its share repurchase program in August last year and has bought back approximately 42.6 million shares since then.

Macy's has an estimated 395.5 million shares outstanding. The company, based in Cincinnati, operates about 840 department stores nationwide.

Its shares rose 42 cents to $39.34 by Friday afternoon.