Macy's shares fell as much as 9.1% in early trading Thursday after it reported adjusted earnings of 7 cents per share versus 1 cent (expected), Revenue of $5.17 billion reported versus $5.30 billion (expected), and Same-store sales of -3.9% reported versus -1.2% (expected).

Macy's also cut its profit outlook for the year, saying it now expects adjusted earnings per share to be between $2.57 and $2.77, where it previously saw $2.85 to $3.05. It's now forecasting same-store sales on an owned plus licensed basis to be down 1% to 1.5%, where it previously expected sales to be flat or gain 1%. 

"Our third quarter sales were impacted by the late arrival of cold weather, continued soft international tourism and weaker than anticipated performance in lower tier malls," said Macy's CEO Jeff Gennette.

"The site is upgraded and our customers can expect an improve experience this holiday season," he said. 

Still, sales at stores owned and licensed by Macy's for at least 12 months were down 3.5% in the quarter, more than the 1% decline Wall Street expected. It's Macy's first decline after seven quarters of gains in same-store sales. 

This quarter, Gennette said the store was able to clear out some of the extra merchandise, leading to "significantly improved margin compression." 

Macy's is down 50% year-to-date through Wednesday's close.

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