What Businesses Are Reporting on the Current State of the US Consumer

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How are consumers in the United States faring? Insights from various companies and their leaders provide a glimpse, with some reporting strong spending patterns and others noting shifts as consumers prepare for potential tariffs on imports.

A prominent homebuilder indicated that consumer confidence has contributed to a sluggish start for the spring home-selling season. Meanwhile, a German toy manufacturer highlighted that its product category tends to withstand economic downturns. Additionally, a major grocery chain has observed a noticeable focus on value among shoppers.

Below is a summary of key observations regarding the American consumer’s behavior thus far this year.

Shoppers Focus on Saving

Albertsons (ACI), a major grocery chain, noted on Tuesday that while there are minimal changes in consumer behavior, overall sentiment appears to be low. CFO Sharon McCollam stated that consumers are primarily looking for value and are seeking ways to reduce spending.

Executives highlighted trends such as increased reliance on promotions and a shift towards purchasing more private label products.

Recent foot-traffic data from retail analytics firm pass_by indicates that grocery stores, clothing retailers, and specialty food shops experienced an uptick in visitors last week.

“This shift isn’t solely about inflation,” explained Vice President of Marketing James Ewen. “Consumers are reacting to news about tariffs and are buying items they believe may soon rise in price or become scarce.” He mentioned that it was unusual to witness simultaneous increases across various categories like essentials, clothing, and specialty foods within the same week.

Netflix (NFLX) also reported that its subscribers are not unexpectedly canceling or downgrading their plans, according to their latest results released Thursday.

CEO Greg Peters indicated that existing metrics showed stability, noting, “Currently, we haven’t observed any significant shifts.” He added that entertainment spending tends to remain stable even during economic downturns, with Netflix’s performance generally holding steady.

Home Buying Slumps; Luxury Travel Persists

Indications suggest that consumers are postponing large purchases, although some may be hastening car purchases to avoid anticipated price hikes due to tariffs.

D. R. Horton (DHI) CEO Paul Romanowski reported during a recent earnings call that the “spring selling season is lagging behind expectations as prospective homebuyers exhibit caution amidst ongoing affordability challenges and a dip in consumer confidence.”

While airlines are under financial pressure this year, luxury travelers appear to be maintaining their spending habits.

United Airlines (UAL) Chief Commercial Officer Andrew Nocella stated that affluent travelers, who often seek premium experiences, seem less affected by current economic conditions.

Executives from American Express (AXP) noted that spending patterns align with their forecasts, reinforcing their recent quarterly financial report.

CEO Steve Squeri mentioned that despite expressing concerns about the economy, their cardholders continue to spend without significant shifts.

In a discussion regarding U.S. consumers, Moncler’s Chief Corporate and Supply Officer Luciano Santel indicated ongoing concerns about the economy and consumer confidence, noting that tariffs are a secondary issue for them.

On the other hand, Tonies (TNIE) CFO Jan Middelhoff described American consumers as “very healthy,” asserting that toys are a category that tends to persevere even during recessions.

“Parents are unlikely to cut back on spending for their children’s gifts and activities,” stated CEO Tobias Wann, adding that engagement with toys has remained consistent week over week.

Middelhoff expressed confidence in the consumer market and anticipated an improvement in consumer sentiment once the current economic uncertainties begin to subside.

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