Showing some slight optimism about the economy, Hoguet said Macy's is "expecting the economic environment to remain challenging at least through the third quarter." However, she added: "We do not know when the environment will improve and, therefore, the key will be maintaining flexibility. What that means is that our merchants must stay liquid and be conservative in placing inventory orders. And we also have to have contingency plans in place to be ready to reduce expense in [capital expenditures] further should our sales trends not start to improve."

Coupons and promotions were at about the same level as last year, and Macy's doesn't expect much of a benefit from tax rebates.

The company also is bolstering bloomingdales.com and discontinuing the Bloomingdale's by Mail catalogue operation next year, which Macy's believes will have only a minor impact on sales and no impact on profits.

Hoguet also debunked rumors that Macy's was planning to announce a major store closing program. "I don't envision that," she said.

"At some point, the economy will turn around, and we will be very well positioned when it does."

Standard & Poor's wasn't pleased with the results, however. The rating agency maintained its "sell" recommendation on the shares, and said the earnings per share reported fell short of its estimate, and that the same-store sales decline was larger than expected. "Given remerchandising efforts in private brands, we are disappointed that women's ready-to-wear was one of Macy's weakest selling categories. Without must-have offerings, we believe it will be tough for the company to arrest its negative same-store sales trend despite easing comparisons."

Macy's Inc. shares on Wednesday rose 3.6 percent reaching $24.93, while the Dow Jones Industrial Average rose 0.7 percent to 12,898.38. The broader S&P 500 grew 0.4 percent to close at 1,408.66, and the S&P Retail Index shot up 1.6 percent to 411.54.

Other notable gainers included New York & Company Inc., which gained 6.7 percent to $7.84. The women's specialty retailer was upgraded by C.L. King & Associates, which cited improved merchandise, higher merchandise margins and reduced markdowns. Shares of Coldwater Creek Inc. increased 3.6 percent to $5.51, while Gap Inc. gained 2.7 percent to close at $18.95. However, American Apparel Inc. plunged 8.9 percent to $7.70, after posting a 34 percent drop in first-quarter earnings on Tuesday.