Consumer companies like P&G, Chipotle, and Pepsi are cutting earnings forecasts due to tariffs

From CNBC: 2025-04-24 14:25:00

Consumer companies like Procter & Gamble and Chipotle are slashing forecasts due to tariffs impacting profits and consumer spending. Companies are facing higher prices on key commodities, leading to potential price hikes for consumers. Treasury Secretary expects a de-escalation in the trade war with China, but situation remains uncertain.

Tariffs are leading consumer companies to consider raising prices to offset lower profits. Worldwide tariffs are causing pressure on industries like aerospace and airlines, with calls for tariff exemptions to minimize impact. Companies like P&G, Keurig Dr Pepper, and Hasbro may raise prices due to higher costs, leading to potential inflation.

Consumer sentiment is dropping as shoppers fear inflation and job losses due to tariffs. Companies like P&G and PepsiCo are cutting forecasts due to a more cautious consumer base. Chipotle reports slower traffic as diners worry about finances, impacting same-store sales growth. Companies like Hasbro warn of potential job losses due to tariffs. Delta Air Lines CEO Ed Bastian criticized Trump’s tariff policy, stating it was hurting domestic economy-class demand and corporate travel due to uncertainty. American Airlines, Southwest Airlines, Alaska Airlines, and Delta withdrew their 2025 financial guidance, citing the unpredictable U.S. economy. United Airlines provided two outlooks in case the economy worsens but still expects to be profitable this year.



Read more at CNBC: Pepsi, Chipotle, P&G cut earnings forecasts