U.S. retailers posted a surprisingly strong fiscal first quarter, with sales and profits rising across major chains, though analysts warn higher-than-usual tax refunds and record buy now, pay later use likely masked underlying consumer weakness. Target's same-store sales jumped 5.6%, its first positive quarter in five, while Ross saw comparable sales surge 17% and Burlington estimated refunds added 1.5 to 2 points to its 6% growth. BNPL adoption hit new highs across income groups, with 15% to 17% of shoppers earning up to $150,000 using the services, per Consumer Edge data cited by BTIG's Janine Stichter. Retailers including Walmart, Ross, TJX, and E.l.f. Beauty issued cautious Q2 guidance, with Walmart's CFO warning consumers will feel more strain from high fuel prices as the tax-refund boost fades. E.l.f.'s CEO said “the consumer is suffering.”
