American Consumers Are ‘Under Pressure.’ That’s Hitting Companies’ Sales Forecasts

The economic unease that’s marked the past year hasn’t faded, executives say.

Americans are worried about the economy, and that anxiety is leading to scaled-back outlooks at a range of companies. Women’s retailer J. Jill (JILL) sees increased concern about the market and geopolitical conditions, executives said, and now expects same-store sales to fall as much as 5% year-over-year in the current quarter. General Mills (GIS) lowered its outlook for the coming fiscal year after reporting a 7% year-over-year decline in North American retail sales in its latest quarter.

“We thought the consumer environment would improve,” General Mills CEO Jeff Harmening said on a third-quarter earnings call on Wednesday. “That hasn’t really been the case. And consumers are still seeking value as much or more than they had [been] when our fiscal year began.”

Companies have shared downbeat projections days after U.S. retail sales ticked up less than expected in February. Americans may be cutting back on expenses in part because they expect to pay more for groceries and household goods in the coming months, according to Bank of America research released Tuesday. The University of Michigan’s Consumer Sentiment last month touched levels not commonly seen—outside the pandemic—since the 2008-09 recession.

Shoppers are under pressure, and consequently, seeking out markdowns, particularly while shopping online, J. Jill CEO Claire Spofford said on an earnings conference call Wednesday.

“As we have heard from others across the industry, fiscal 2025 has started off more slowly than expected,” Spofford said, according to a transcript from AlphaSense. “Our surveys echo the uncertainty.”

Customers are already dining out less frequently, according to General Mills’ Harmening, and are now looking to save further on groceries. “Our belief is that consumers have become much more value conscious,” he said.

At Williams-Sonoma (WSM), executives on Wednesday cited an “unpredictable” economic backdrop while suggesting that sales could fall in 2025. Dollar General (DG) recently said that while it has seen some customers trading down to its offerings, its core consumer is feeling stressed.

The uncertainty isn’t a headwind for all companies. Ollie’s Bargain Outlet (OLLI), a discount retail chain, said it’s retaining high-income consumers, and may have the ability to acquire merchandise, real estate and talent as other retailers close or file for bankruptcy, CEO Eric van der Valk said on an earnings call Wednesday.

“Consumers remain under pressure,” van der Valk said, according to a transcript from AlphaSense. “Many retailers are closing stores or shutting down entirely. Tariffs are creating uncertainty across the retail landscape. This all bodes well for Ollie’s.”