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.

Macy’s raised its financial guidance for the year, but its outlook for the crucial fourth quarter was more reserved, reflecting the mood of many customers who have grown more selective in what they buy during the holiday season.

Trading was volatile Wednesday as investors weighed what appeared to be growing momentum for Macy's under new CEO Tony Spring, and anxiety over the U.S. economy that threatens to curb holiday spending.

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

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