Macy’s Inc. (NYSE: M) reported its fiscal second-quarter financial results before the markets opened Wednesday. The retail giant had $0.64 in earnings per share (EPS) on $6.10 billion in revenue. That compared to Thomson Reuters consensus estimates of $0.76 in EPS on revenue of $6.23 billion. In the same period of the previous year, the retailer posted EPS of $0.80 and $6.27 billion in revenue.

Given the weaker-than-expected sales performance in the first half, the company reduced its guidance for the full year. Macy’s now expects total sales to be down by roughly 1%, versus growth of 1%, but it is maintaining its EPS estimate of $4.70 to $4.80. Consensus estimates call for $4.63 in EPS on $28.26 billion in revenue.

One of the highlights to look forward to in the third quarter is that Macy’s will begin e-commerce selling in China in late fall 2015 through a joint venture with Fung Retailing.

Recently, Macy’s was given a theoretical value of $125 per share by Starboard Value, if it could sell off or unlock the value in some of its prime real estate assets. With its current prices, investors should consider that the consensus analyst price target is $69.39 and the highest analyst price target is up at $82.00. In short, this is far more aggressive than Wall Street analysts will go. Activist math is sometimes very different from the math the rest of the planet uses.

While this might not pertain to every single piece of land the company owns, Starboard’s public commentary pointed toward the real estate being worth about $21 billion. That may raise some eyebrows due to Macy’s having a $22.5 billion market cap before its stock ran in July.

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As a result of Starboard and in light of current market conditions, the company has retained specialized real estate advisors, in addition to financial, legal and tax advisors, to intensely study its real estate portfolio to determine where opportunities exist that would further enhance the value of the company. Macy’s is actively working with its advisors and will communicate the results of its analysis and review as soon as complete.

The company repurchased approximately 8.0 million shares of its common stock in the second quarter of 2015 for a total of approximately $552 million.

Terry J. Lundgren, Macy’s chairman and CEO said:

We are disappointed in our second quarter results, which were impacted by a variety of factors, both internal to the company and in the macroeconomic environment. We expect an improvement in trend beginning in the second half of 2015 based on a range of promising new strategic initiatives, including those initially announced in January, which we believe will transform our company in the years ahead.

On the books, Macy’s had a total of $843 million in cash and cash equivalents at the end of the second quarter. The same period of the previous year had $1.63 billion.

Shares of Macy’s opened Wednesday at $66.55 but tumbled more than 5% shortly afterward. The 52-week trading range is $54.84 to $73.61. The stock has a consensus analyst price target of $69.39.

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