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Luxury handbag maker coach Inc. will report fiscal fourth-quarter results before the market opens on Tuesday.

WHAT TO WATCH FOR: If consumers are buying pricier handbags. Last quarter Coach said that more shoppers bought items in its stores and shoppers were more likely to buy handbags than lower-priced accessories.

The company lowered prices during the recession, but said it might raise some prices this year if shoppers continue to buy higher-priced bags.

WHY IT MATTERS: If shoppers feel more willing to spend on luxury items such as handbags, that is a positive sign that the economy is recovering. Any sustained economic recovery will depend on an increase in consumer spending.

WHAT’S EXPECTED: Analysts polled by Thomson Reuters, on average, expect earnings of 56 cents per share on revenue of $889.2 million.

LAST YEAR’S QUARTER: Coach, based in New York, reported net income of 45 cents per share on revenue of $777.7 million.