Key Highlights

● PROG Holdings cut its annual outlook and cited a cautious consumer.

● Lennox International slashed its earnings guidance.

● Some companies, like Brinker and Etsy, still posted strong results.

● Higher borrowing costs and fuel prices are squeezing households.

A string of companies lowered their forecasts, and the messages from consumer-facing businesses were hard to miss. Lease-to-own provider PROG Holdings cut its annual outlook and said it is turning more cautious on shoppers, while heating and cooling maker Lennox International slashed its earnings guidance.

The cuts arrived on the same day the Federal Reserve described the economy as strong, underscoring a split between headline growth and the experience of many households.

PROG's Warning and Big-Ticket Pain

PROG Holdings, which offers lease-to-own financing for furniture and electronics, tumbled after cutting its full-year revenue outlook, with third-quarter revenue beating estimates but adjusted earnings falling short, and its chairman and CEO saying the company is taking a more cautious view of the consumer as it closes out the year.

Lennox slid after third-quarter revenue and earnings missed estimates and it cut its 2026 adjusted earnings guidance, while Whirlpool edged lower after an analyst downgrade citing weak demand for big-ticket home goods.

Not All Bad News

The consumer picture was mixed rather than uniformly weak, as Brinker International soared after raising its full-year guidance on strong Chili's sales, and Etsy jumped to a 52-week high after beating revenue and earnings estimates.

Several forces are weighing on consumers, including high borrowing costs after the Fed's September rate hike and elevated oil prices, which can push up gasoline costs, with the Fed's own statement saying inflation remains elevated.