From CNBC: 2025-03-15 07:18:00

Cosmetics and Ross Stores, have all warned that the year ahead could be tougher than they had anticipated, though they remain confident they can weather the storm, according to recent earnings calls. Still, they’re watching customer sentiment closely and preparing for a range of outcomes.

And then there are the companies that were already struggling before this latest round of economic headwinds. Nordstrom, Macy’s and Kohl’s have all announced plans to close stores in the coming year as they reshape their businesses for a new era of retailing.

Even with all the challenges, there are some bright spots in the economy, including the continued strength of the U.S. job market and wage growth. But if consumer spending continues to slow, it could be tough for companies to keep up with rising costs and maintain their profit margins.

Retail giants like Beauty and Abercrombie & Fitch have issued weak forecasts, citing uncertainty and potential tariff impacts. Companies like United and Walmart have outperformed the S&P 500 despite decreased spending, but recent warnings suggest shoppers may be reaching a tipping point. Dollar General CEO warns of worsening consumer outlook amid inflation and economic challenges. American Eagle also anticipates challenges ahead due to decreased demand and uncertain economic factors. CEO Jay Schottenstein highlights consumer fear of unknown impacts on spending habits.



Read more at CNBC: Delta, Walmart warn about consumer spending amid tariffs, inflation