How CEOs Are Describing American Consumers: ‘a Little Numb’ to Tariffs’

Delta reinstated its 2025 profit outlook, a sign that dovetails with CEO Ed Bastian’s view that the current environment is “incredibly stable.”

Consumers, Bastisan told Bloomberg, have become “a little numb” to headlines about trade wars.

Bookings are not where Delta forecast they would be at the start of the year, but they have stabilized.

“People are still traveling,” Bastian told CNBC. “What they’ve done is they’ve shifted their booking patterns a little bit. They’re holding off making plans until they’re a little closer in to their travel dates. And so that’s shifted some of our bookings and yield management strategies.”

Tariffs may be in fashion, but that hasn’t dampened demand, Ralph Lauren CEO Patrice Louvet said.

“Our core consumers are actually still very resilient,” Louvet said. “When you look at the part of our lineup that is responding really nicely right now, it’s our core products.”

ConAgra CEO Sean Connolly says inflation is still affecting his company’s bottom line. Its persistence means consumers are being forced to adjust, too.

“Consumer sentiment remains under pressure,” Connolly said in recorded remarks before the food and snack company’s earnings call. “The cumulative impact of inflation and economic uncertainty has led to value-seeking behaviors becoming even more pronounced.”

Carmax CEO Bill Nash says consumers are “less stressed,” but that doesn’t mean there’s a fully optimistic outlook.

“I would say from a consumer sentiment standpoint, they’re probably a little less positive about the future, but I don’t think it necessarily showed up so much in the buying habits at this point,” Nash said on Carmax’s earnings call.

Kroger CEO Ron Sargent said consumer confidence remains down. In an uncertain environment, he said, shoppers are looking for deals.

“I think in terms of the consumer, we expect the consumer to remain cautious throughout the year,” Sargent said on Kroger’s earnings call. “And we’re responding to that with simpler promotions, coupons, lower prices, and a lot of on-brand choices.”

Sargent said Kroger continues to see more consumers shop at the store versus opt for a night out.

“They’re making more frequent trips to the store,” he said. “The average basket is less. When you look at spend in total, I think it’s been very stable.”