Weakening consumer demand causes drop in UPS stock.

UPS reported a 6% decline in Q1 revenue due to weakening consumer demand, with adjusted earnings per share down 27.9%. The company's CEO, Carol Tomé, stated that US discretionary sales are lagging grocery and consumable sales, and disposable income is shifting away from goods to services. UPS is projecting full-year revenue of roughly $97 billion with an operating margin of roughly 12.8%, which is at the low end of 2023 guidance ranges provided by the company. The decline in UPS sales follows the broader trend of retail sales in the US, which dropped on a monthly basis in both February and March, raising concerns of a recession.