Macy’s shares declined Thursday after the department store operator issued a weaker-than-expected third-quarter outlook despite beating analysts’ second-quarter earnings and sales estimates. Adjusted earnings were 40 cents per share, excluding a 23-cent benefit from tariff refunds, versus the 37-cent consensus estimate. Sales rose 1.1% year over year to $4.866 billion, ahead of the $4.826 billion estimate, and increased 1.9% excluding fiscal 2025 store closures. Macy’s forecast a third-quarter adjusted loss of 19 cents to 23 cents per share, compared with analysts’ expected loss of 6 cents, while projecting sales of $4.65 billion to $4.70 billion. Comparable sales are expected to range from a 0.5% decline to a 0.5% increase, slowing from 2.7% growth in the second quarter. Average unit retail (the average selling price per item) rose about 9% in the second quarter, and Macy’s expects further gains at a slower pace. The company plans to use tariff refunds for selective pricing in furniture and fine jewelry, test more stores in the fourth quarter and expand further in 2027 as it works toward reimagining its roughly 350-store go-forward fleet.