Consumer companies fell slightly as earnings warnings from some major consumer-discretionary companies hinted at a broad slowdown in U.S. household spending.

Shares of department store chain Kohl's plunged by more than 20% after it cut its dividend and warned of another decline in fiscal 2025 sales, a sign that new Chief Executive Ashley Buchanan's turnaround efforts are not yet bearing fruit.

Shares of Dick's Sporting Goods declined after the athleticwear chain forecast earnings that lagged Wall Street expectations, citing economic uncertainty. German sneaker maker Puma warned that geopolitical tensions and economic challenges would weigh on 2025 sales growth. Those warnings were echoed by Delta Air Lines, which said domestic demand was set to slow. American Airlines and Southwest Airlines also cut their projections for first-quarter revenue, citing an unexpected slowdown in travel demand.

Economists said the corporate warnings and household surveys were forming a mosaic view of a U.S. consumer whose appetite for discretionary expenditure was waning. For example, in last month's consumer-sentiment survey from the University of Michigan upper- and middle-class Americans' view of their finances, which had long been resilient, turned sour, noted economists at brokerage Morgan Stanley.

Lego said its sales increased last year as its Star Wars and Harry Potter play sets boosted its popularity, helping it outperform the market and take share from its rivals, despite a dip in global demand.

Write to Rob Curran at rob.curran@dowjones.com

(END) Dow Jones Newswires

March 11, 2025 17:24 ET (21:24 GMT)

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