Macy’s Inc. (NYSE: M) reported first-quarter 2016 results before markets opened Wednesday. The department store giant posted quarterly adjusted diluted earnings per share (EPS) of $0.40 on revenues of $5.77 billion. In the same period a year ago, Macy’s reported EPS of $0.56 on revenues of $6.23 billion. First-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.36 and $5.93 billion in revenue.

Comparable store sales for owned plus licensed stores fell 5.6% in the quarter, and they fell 6.1% on the company’s owned stores. Net sales fell 7.4% year over year.

Trying to limit the damage Macy’s boosted its quarterly dividend from $0.36 per share to $0.3775. The higher dividend will be payable on July 1 to shareholders of record as of June 15.

The company repurchased approximately 3 million shares of its own stock during the quarter for $129 million and said it has about $1.9 billion left in its authorized share buyback program.

Macy’s lowered its full-year same-store sales guidance to a decline of 3% to 4% on an owned plus licensed basis with same-store sales at owned stores down about 50 basis points. Previously the company had forecast a decline of about 1% in 2016.

EPS guidance has also been cut, from a prior range of $3.80 to $3.90 to a new range of $3.15 to $3.40.

Consensus estimates call for second-quarter EPS of $0.65 on revenues of $5.89 billion. For the full year, analysts were looking for EPS of $3.80 on sales of $26.49 billion.

CEO Terry Lundgren said:

We are seeing continued weakness in consumer spending levels for apparel and related categories. In particular, our sales trend relative to expectations meaningfully slowed beginning in mid-March, and first quarter results are below our original outlook. Headwinds also are coming from a second consecutive year of double-digit spending reductions by international visitors in major tourist markets where Macy’s and Bloomingdale’s are key destinations, as well as a slowdown in some center core categories – further intensifying the challenges associated with growing topline sales revenue

Shares traded down 12% after Wednesday’s opening bell to a new 52-week low of $32.55. The 52-week high is $73.61. Thomson Reuters had a consensus analyst price target of $44.43 before the results were announced, and the high price target was $53.00.

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