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News Summary: Macy's 1Q profit up 38 percent

NEW YORK (AP) -- STELLAR PROFITS: Macy's reported that its first-quarter profits rose a better-than-expected 38 percent and total revenue rose 4.3 percent.

BEHIND THE RESULTS: Macy's continues to reap benefits from initiatives to tailor merchandise to local markets. It's also locked in a number of exclusive fashions.

INVESTOR DISAPPOINTMENT: Investors, however, were disappointed that Macy's kept its full-year earnings outlook intact, and sent its shares lower.