Macy's Beats on Earnings; Hikes Dividend

Adam Jeffery | CNBC

Macy's flagship store in Herald Square, New York City.

Macy's reported quarterly earnings that beat analysts' expectations on Wednesday, with strong sales that allowed the company to hike its dividend.

After the earnings announcement, the company's shares rose by more than one percent in pre-market trading. (Click here to track the company's shares following the report.)

Macy's posted first-quarter earnings excluding items of 55 cents per diluted share, up from 43 cents a share in the year-earlier period.

Revenue increased to $6.39 billion from $6.14 billion a year ago.

Analysts had expected the company to report earnings excluding items of 53 cents a share on $6.39 billion in revenue, according to a consensus estimate from Thomson Reuters.

"Based on the effectiveness of strategies we have in place, we are confident that momentum will continue going forward, which is reflected in the actions we are announcing today to increase returns to our shareholders through an increased dividend and share repurchases," said Terry J. Lundgren, Macy's chairman, president and CEO, in a statement.

The retail giant also raised its quarterly dividend to 25 cents a share, from 20 cents.