New York — Macy’s posted a surprise third-quarter profit and its strongest comparable sales in more than three years as an extensive overhaul of the 167-year-old New York department store begins to resonate with shoppers.

After posting its back-to-back quarterly jumps in comparable sales Wednesday, Macy’s raised its financial guidance for the year. However, even the elevated sales guidance issued Wednesday was below last year's annual sales numbers, sending a note of caution about the mood of the American consumer.

Macy's said that the guidance reflects a customer that is being more selective in what they buy as the holidays approach.

Shares slid 4% before the opening bell.

Comparable sales, a good barometer of a retailer’s health, have been an ominous sign at Macy’s for several years

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