Macy's (NYSE: M) appears to be running a "racy's" lower Wednesday morning following the retailers first-quarter 2012 results.

Revenue for the retail giant rose 4.3 percent to $6.143 billion. Net income saw a 38 percent increase to $181 million, or 43 cents per diluted share. Comps rose 4.4 percent.

The Street was expecting EPS of 40 cents and revenue of $6.13 billion.

Amid the rise in sales, costs also increased. Macy's reported gross margin consolidated from 39.1 percent during the same quarter last year to 38.8 percent -- not a huge move, but every basis point counts in retail.

Looking ahead, Macy's raised its fiscal 2012 comps guidance from up 3.5 percent to up 3.7 percent, still slower than 5.3 percent growth in 2011. EPS guidance was reaffirmed.

Shares are 4 percent lower Wednesday.

Earnings