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Department store operator Macy's (M - Get Report) has been downgraded to hold. While the company's profit margins have been expanding, net income is deteriorating, debt management has been poor, and return on equity has been disappointing. On Thursday, Macy's said same-store sales, or sales at stores open at least a year, rose 2.4% in August, beating Wall Street's estimates, but the company warned that it expected comps to drop 1% to 3% in September. Last month, the company posted a second-quarter profit that was sharply lower than its original forecast, and it cut its guidance for the full year. Macy's second-quarter earnings fell to $74 million, or 16 cents a share, from $317 million, or 57 cents a share, as the company recorded more charges tied to integrating its 2005 acquisition of May Department Stores. Excluding charges, Macy's earned 29 cents a share. Macy's had been rated buy since September 2005.