With shares of Macy’s about 9% higher over the past 3 months, what should you be looking for as Macy's reports earnings on Wednesday?
What to Watch
Macy's is considered a barometer of spending among middle-and upper-income shoppers. How Macy's shoppers are spending offers clues into the broader retail sector as well as the economic recovery.
When the numbers hit before the bell, investors will be looking to see if Macy's saw any signs of strong resistance to higher prices.
Clothing stores are starting to pass along higher prices on certain goods as they face higher labor costs in China and costs rise for commodities such as cotton.
Wall Street also will want to know whether rising gas prices are making shoppers go to the mall less.
Analysts surveyed by FactSet, on average, expect earnings of 18 cents per share on revenue of $5.81 billion.
According to Citi analyst Deborah Weinswig, Macy’s is “really firing on all cylinders and I think we’ll see that in their numbers.”