Department store Macy’s (M) quarterly results will be in focus on Wednesday.
On Tuesday, the U.S. Trade Representative’s (USTR) office released two lists of Chinese imports. One list outlined the goods that would be hit with a 10% tariff effective September 1, and another list of goods that would see a 10% tariff on December 15.
“As part of USTR’s public comment and hearing process, it was determined that the tariff should be delayed to December 15 for certain articles. Products in this group include, for example, cell phones, laptop computers, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing,” the USTR said in a statement.
Investors will be paying close attention to Macy’s quarterly results ahead of the market open on the back of Tuesday’s tariff announcement. In the previous quarter, Macy’s management warned that its consumers would feel the impact if the U.S. followed through with its threat to slap the final round of tariffs on the remaining $300 billion worth of Chinese goods. Well, now that it appears as though those tariffs will indeed be imposed, investors and analysts are likely going to be hyper focused on any additional commentary on what the company’s plan of action is going forward to mitigate any impact from the continued trade war.
Analysts are forecasting that Macy’s will likely report results that fall short of expectations and are also anticipating a possible cut to its full-year outlook.
Macy’s is expected to report adjusted earnings of 45 cents per share on $55.56 billion in revenue during the second quarters. Same-store sales, a key industry metric, is expected to have grown 0.2%, according to data compiled by Bloomberg. The options market is implying a 10.4% move in either direction following the report.
Heidi Chung is a reporter at Yahoo Finance. Follow her on Twitter: @heidi_chung.
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