What: Fashion’s CEOs are acknowledging a more cautious consumer in the US as they report first quarter results.

Why it is important: CEOs are shifting their tone as they notice American shoppers pulling back.

As first quarter results come in, CEOs are standing by their plans while also noting a shift in consumer behavior.

Capri Holdings saw success in Asia as well as the Middle East, Europe, and Africa however reported a decline in North America. The group’s CEO stated that they first saw the decline in North American department stores with Michael Kors but also the luxury side of the business. The group is feeling the pulling back in the beginning of the year from consumers who were previously feeling positive about their financial situation in 2022.

At Victoria Secret, numbers decreased by high single digits across the board. While the retailer doesn’t have a single answer for the sharp decline in the category, they are focusing on getting traffic into stores within the difficult environment.

Macy’s saw demand trends worsen starting mid-March with an even further decline in April. They attribute the decline to cooler temperatures and headlines regarding layoffs and the banking crisis. The retailer saw the US consumer pull back even more than anticipated as customers reallocated their spending towards food, essentials, and services. As a result, they have readjusted their outlook for they year, expecting macro headwinds to continue and potentially worsen.

Nordstrom continues to see customer demand under pressure and has seen an impact since June of last year with its top-line results being impacted at both the Rack and its full-line stores. In 2022, the retailer benefitted from a strong pent-up demand for a return to occasions, making year-over-year sales comparisons for Q1 difficult. However the retailer expects these comparisons to get progressively easier as the year continues.

PVH Corp. beat first quarter earnings projections but is proceeding cautiously as they recognize the current macroeconomic environment and have decided to reaffirm their annual guidance.

Macy’s and other fashion CEOs offer scarier take on the US consumer