Macy’s Inc. profit beat analyst expectations as markdowns attracted bargain-hunting shoppers who are pulling back on purchases after a pandemic shopping boom. 

While US shoppers are still spending at stores like Walmart Inc. for necessities, as well as on travel and entertainment, outlays on apparel and accessories have fallen from record highs during the pandemic.

Promotions were “surgically implemented” to clear seasonal items, Macy’s chief executive officer Jeff Gennette said in a statement. “We continue to see uncertainty in the macroeconomic environment,” he said.

Adjusted earnings per share were 26 cents, compared with the average analyst estimate of 13 cents. Gross margin of 38.1%, meanwhile, weakened from the prior quarter due to heightened levels of clearance markdowns, the company said.

Second-quarter comparable sales topped the average analyst estimate, though were down from a year ago.

The shares were little changed in early trading in New York. The stock has tumbled more than 28% for the year to date as of Monday’s close.

Same-store sales at the Macy’s namesake brand were down 9.2% on an owned basis, while the higher-end Bloomingdale’s fell 2.7% and Bluemercury rose 5.8%. 

Prior to the earnings report, analysts at Goldman Sachs added Macy’s to their “conviction list,” a group of companies that the bank expects to outperform. The analysts noted that Macy’s strong financial position, launch of private label brands and development of small footprint stores should support long-term performance.

Results this month from luxury retail companies Tapestry Inc. and Capri Holdings Ltd., which sell designer shoes and bags in department stores, showed sales declines in the most recent quarter due to softening consumer demand across regions.