Macy's (M.US) Q3 Earnings Report to Be Released Soon, Will High-End Consumption Remain Weak?

Macy's (M.US) will report its third-quarter earnings before the market opens on Tuesday. Wall Street analysts expect Macy's Q3 revenue of $4.72 billion, down 2.9% YoY; expect a loss of $0.01 per share.

Last week, Target (TGT.US) reported its third-quarter earnings that missed expectations and lowered its full-year guidance, which unsettled the market. Such concerns also spread to Macy's, another retailer.

Macy's lowered its annual sales guidance in its Q2 earnings report, citing increased discounts from competitors and more cautious consumers. The company's management noted that rates are still high and customers are spending. Therefore, investors will closely watch whether this trend will continue in Q3, as the Fed didn't start cutting rates until the last month of Q3.

Another point of interest for investors is the progress of Tony Spring's turnaround plan for the iconic retailer. Since taking the helm in February, Tony Spring has been closing Macy's stores with declining revenue and investing in stores with stronger sales. Spring will also open more Bloomingdale's stores and Bluemercury beauty chains, both of which are more upscale and perform better than Macy's, which targets the mass market.