Rosalnd's (ROST.US) annual earnings outlook is gloomy, and a decline in consumer demand poses a significant concern.

Discount retailer ross stores (ROST.US) posted better-than-expected fourth-quarter results on Tuesday, but its annual sales and profit guidance fell short of analyst expectations, as did its larger peers, showing a decline in consumer demand amid economic and geopolitical uncertainty. Consumer spending in the US fell for the first time in two years in January, with significant declines at furniture, apparel, and electronics retailers, and the guidance warned that sales could fall further as tariffs and immigration crackdowns loom. Ross Stores tried to attract more customers by offering a diverse range of products at different price points, but the effort failed as its core customer base, low- and middle-income families, began to cut back on spending. "We believe the confluence of the abnormal weather, as well as the high volatility in the macroeconomic and geopolitical environment, collectively had a negative impact on traffic," said CEO Jim Conroy. tjx companies (TJX.US), another discount retailer, also predicted lower-than-expected annual same-store sales growth and profits in its latest earnings report. Retail giants walmart (WMT.US) and Target (TGT.US) also provided gloomy annual forecasts, expecting President Trump's import tariffs to put pressure on consumer spending. The company expects same-store sales to decline 1% to 2% in fiscal 2025, while analysts expect 2.9% growth, and annual EPS guidance is set between $5.95 and $6.55, compared with the market's expectation of $6.69. "Given the uncertainty of these external factors, we believe it is prudent to take a cautious approach to forecasting the business, especially in the early stages of the year," Conroy said. In terms of fourth-quarter results, the company's sales fell 1.8% year-on-year to $5.91 billion, topping analysts' expectations of a 1.1% to 1.6% decline. EPS was $1.79, compared with the market's expectation of $1.66. The stock rose slightly 0.41% after hours following the earnings release, recovering from earlier losses. The stock has fallen about 10% this year, lagging behind TJX.