Dec. 7 (Bloomberg) -- Macy’s Inc. authorized a $1.5 billion increase in share repurchases which could lead to the retailer more than doubling the dollar amount of stock it has purchased since 2011.
Macy’s, the second-largest U.S. department-store chain, said its board’s decision would bring its total outstanding authorization to $1.86 billon, according to a statement today. Since resuming share repurchases in August 2011, Macy’s had acquired $1.49 billion worth of shares as of Oct. 27.
Chief Executive Officer Terry Lundgren said the chain is committed to using its excess cash to enhance shareholder value. Today’s increase reflects the company’s confidence in its ability to deliver sales growth, he said.
The shares jumped 1.2 percent to $39.38 at 1:51 p.m. in New York. Cincinnati-based Macy’s had climbed 21 percent this year before today.
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