Department store operator Macy's Inc reported its fifth straight drop in quarterly sales, missing analysts' estimates, as customers cut back on buying apparel and a strong dollar discouraged tourists from spending heavily.

Shares of Macy's, which started in 1858 as a small store in Manhattan, fell almost 8 per cent in premarket trading on Wednesday.

Macy's said comparable sales at its stores open for at least a year, including sales at third-party sections within its stores, fell 5.6 per cent in the first quarter. Analysts on average had expected a decline of 3.2 per cent, according to research firm Consensus Metrix.

The company, whose profits have been shrinking for more than a year, said it would intensify cost-cutting measures, including monetizing unproductive real estate.

Macy's, which is under investor pressure to monetize its real estate, said it was evaluating proposals from potential partners for joint ventures or other deals for its flagship and mall-based stores.

Net income attributable to Macy's fell 40 per cent to US$116 million, or 37 cents per share, in the quarter ended April 30.

Excluding items, Macy's earned 40 cents per share, beating the average analyst estimate of 36 cents, according to Thomson Reuters I/B/E/S.

The company's net sales fell 7.4 per cent to US$5.77 billion, missing the average estimate of US$5.93 billion.