Macy's reported a 1.7 percent decline in quarterly sales as a severe winter across parts of the United States deterred shoppers from visiting its department stores.
Read MoreSears eyes selling some or all of Sears Canada
The company, which also owns the high-end Bloomingdale's chain, said revenue fell to $6.28 billion in the first quarter ended May 3 from $6.39 billion, a year earlier.
Comparable-store sales fell 1.6 percent in the quarter.
Net income rose to $224 million, or 60 cents per share, from $217 million, or 55 cents per share.
Macy's also raised its dividend by 25 percent and said its board had authorized a $1.5 billion increase in its share buyback program.
After the earnings announcement, the company's shares rose in premarket trading. (Click here for the latest quote.)
—By Reuters