(Corrects figure for third-quarter restructuring costs to $33 million in 9th paragraph)

* Sees Q4 EPS $1-$1.05, below Street view of $1.17/shr

* Q3 loss/shr 3 cts ex-items; Wall Street view 7 ct loss

* Q3 sales fell 3.9 pct to $5.28 bln, online up 21.1 pct

* Shares down 7 pct in morning trade (Adds analyst comments, details, byline; updates shares)

By Phil Wahba

NEW YORK, Nov 11 (Reuters) - Department store operator Macy's Inc (M.N: Quote, Profile, Research) forecast earnings for the fourth quarter, which includes the crucial holiday shopping season, far below Wall Street expectations on Wednesday, sending shares down 7 percent.

Department stores have been hit hard in the recession as consumers reined in their discretionary spending. But recent hints of an economic recovery may have raised the hopes of retail investors, setting Macy's up to fall, one analyst said.

"The falls in same-store sales were less dramatic than they could have been, and there are consumers shopping," said Leah Hartman, an analyst with CRT Capital Group. "Expectations might have gotten a little ahead of themselves."