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Analyst Maintains Macy's Buy Rating as Better Weather Aids Results

Bad weather weighed on Macy's sales in the first quarter, but the retailer's profit still managed to narrowly beat analyst expectations. Despite a 1.7% drop in quarterly sales, CEO Terry Lundgren said soft business trends improved in April as the weather warmed, which the company sees as a positive sign for the second quarter. Bank of America Merrill Lynch analyst Lorraine Hutchinson reiterated her Buy rating on the stock, as she believes the company is poised for continued growth in 2014, driven chiefly by the company's three-pronged M.O.M. business strategy. Macy's also raised its dividend and increased its share buyback program by $1.5 billion.