Earnings Preview: Macy's Inc.

NEW YORK (AP) — Macy's Inc. reports earnings for the third quarter on Wednesday before the stock market opens. The following is a summary of key developments and analyst opinion related to the department store chain during the period.

OVERVIEW: Department stores are facing big challenges as shoppers — worried about job security and tight credit — keep their focus on basics like food. While consumers are starting to spring for little indulgences like boots and home accessories, overall business remains weak.

Macy's, based in Cincinnati, has been shoring up profits with aggressive cost-cutting, including job cuts, lower capital spending and reduced contributions to employees' retirement funds. The moves followed Macy's announcement in January — on the heels of the worst holiday season in decades — that it would close 11 stores, affecting 960 employees.

Last year, it began rolling out a program to localize merchandising to regional markets.

The company has been expanding exclusive deals. Tommy Hilfiger women's and men's sportswear and children's wear is now sold only at Macy's and — in the U.S. — online and at Hilfiger's own stores.