The case arose during a spate of complaints alleging store security profiling of minorities.
The Manhattan district attorney's office told a judge Wednesday it couldn't prove the misdemeanor case against Pakistani immigrant Joweria Khalid beyond a reasonable doubt. Prosecutors didn't give reasons.
Khalid's lawyer says a security guard gave a misleading account.
The guard said he'd watched Khalid throughout her time in the jewelry department Oct. 26. But he apparently didn't notice she bought a $33 bracelet before selecting other items she was accused of taking.
Khalid's lawyer says she planned to take the items to another cashier.
Macy's says it doesn't tolerate discrimination.