Macy's Inc (NYSE:M) reported third-quarter financial results on Wednesday. Analysts are largely encouraged by the company's progress, but remain cautious due to margin pressures.

What Happened: Macy's reported strong headline results for the third quarter, beating analyst estimates for revenue and adjusted earnings. However, margin pressures pushed the company to lower its earnings guidance, which has analysts exercising caution in the wake of the report.

"M slightly raised its sales outlook for the year while reducing expectations for gross margin and leaving its SG&A outlook largely intact, reflecting continued macro challenges, including discerning...