Today is March 20, 2026.

And welcome back to Furniture Industry News.

I'm glad you're here.

There's a lot to unpack this week, but if you step back and look at everything together, one theme really stands out.

This industry is moving forward, but it's doing it in a very uneven, selective way.

Some companies are gaining ground, others are still working through pressure, and a lot of it comes down to execution right now.

Let's start with William Sonoma because their results are a good example of what's happening across the board.

They wrapped up fiscal 2025 with positive comparable sales, which is really what everyone is watching closely these days.

Comps were up 3.2% in the fourth quarter and up 3.5% for the full year.

That's a solid performance in this kind of environment.

Now, total revenue in the fourth quarter was actually down, but that was largely due to a calendar shift.

The prior year had an extra week.

So when you normalize for that story, looks a lot more stable.

Margins held up well too, with operating margins over 20%, which continues to set them apart from a lot of competitors.

But the interesting part is what happened within the brands.

Pottery Barn saw a pretty noticeable decline in the quarter, down close to 9%.

West Elm was down just over 3%, but still managed slight growth over the full year.

So what does that tell us?

Consumers are still out there, still spending, they're being more selective.

Even strong brands are feeling that shift.

Looking ahead, Williams Sonoma is guiding four comps between 2 and 6% in 2026.

That's confident, but it's also measured.

Nobody is getting ahead of themselves right now.

Now, on the other end of the spectrum, Bob's Discount Furniture is telling a very different story.

And honestly, one of the stronger growth stories we've seen lately.

This was their first earnings report as a public company and they came out with solid numbers.

Fourth quarter revenue was up 8.2% for the full year.

Revenue climbed nearly 17% to $2.4 billion.

And net income was up more than 38%.

That's not small growth, that's real momentum.

And it's being driven by two main things, new stores and comparable sales growth.

They opened 20 new stores in 2025 and they're planning about the same in 2026.

But the bigger picture here is their long term goal.

They're targeting more than 500 stores by 2035.

Right now they're just over 200 locations.

So that's more than doubling their footprint over time.

They've also been expanding into new markets like North Carolina.

And early results there are reportedly exceeding expectations.

Now scaling that kind of growth comes with its own challenges, but right now their model seems to be translating well.

Switching over to Macy's, we're seeing a different kind of progress.

Let's less about expansion, more about transformation.

They've been working through a multi year strategy to reshape the business and we're starting to see some traction.

Fourth quarter comps were up 1.8% and importantly, every nameplate posted positive comps.

Bloomingdale's really stood out with strong gains in both sales and comps.

Net income also improved significantly year over year, even though total sales were down slightly due to store closures.

The company is putting a lot of focus on better assortments, stronger merchandising and more curated experiences both in stores and online.

And according to leadership, customers are responding to that.

For the full year, comps were up 1.5%.

That helped offset declines tied to locations they're moving away from.

Looking ahead, they're expecting some pressure from tariffs and broader economic factors, especially in the first half of the year.

But overall this they believe the strategy is working.

Now all of this ties into what's happening on the consumer side, and there was some interesting data this week around high income shoppers.

This group, households earning $150,000 or more is continuing to play a major role in furniture spending.

On average, they're planning to make about three furniture purchases this year, spending around $5,000 total.

That's about 1.7 times more than lower income households.

But what's really important is how they're making decisions.

For this group, quality is the top priority by a wide margin.

Price matters less, especially as income goes up.

And brand is also a significant factor, with about 62% saying it influences their decisions.

Furniture for them is often viewed as an investment, not just a purchase category.

Demand looks familiar.

Sofas and sectionals are at the top, followed by rugs, mattresses and occasional furniture.

But here's the part that's easy to overlook.

Even for high income consumers, furniture isn't the top spending priority.

It actually ranks behind things like retirement savings, travel, healthcare and family related expenses.

So yes, they're spending, but you still have to earn that spend.

It's not automatic.

Now let's shift to the supply side because there are some meaningful changes happening there as well.

Furniture imports into the United States dropped 12.7% in 2025, falling to about $29.6 billion.

A big part of that is tied to tariffs.

China saw one of the largest declines, with shipments down more than 35%.

At the same time, Vietnam has strengthened its position as the top exporter, now accounting for over a third of shipments to the U.S. other countries like India and Thailand are gaining ground as sourcing continues to shift.

When you break it down by category, metal furniture imports fell sharply, likely due to tariffs on steel and aluminum.

Wood and upholstery imports were also down, but not as dramatically.

There's some indication that domestic production, especially in upholstery, may be picking up a bit, particularly in regions like North Carolina and Mississippi.

But imports are still a major part of the supply chain, even with the added costs on the export side, US furniture exports also declined, down about 4.7% to $2.4 billion.

However, because imports dropped more significantly, the overall trade deficit actually narrowed.

Canada remains the largest export market, followed by Mexico and a handful of smaller international markets.

Wood furniture exports saw slight growth, while upholstered and metal furniture exports declined.

And that really reflects the long term structure of the industry.

A lot of production, especially wood furniture, has shifted overseas over the years, while domestic upholstery still holds a stronger position.

So when you put all of this together, what does it mean at a high level?

The industry is still growing.

The National Retail Federation is forecasting retail sales growth of about 4.4% in 2026, which is actually above the average of the past decade.

But that growth isn't evenly distributed.

Higher income consumers are driving a lot of it.

Strong operators are gaining market share, and companies that are executing well, whether that's through merchandising, expansion, or cost control, are, are finding ways to move forward.

At the same time, there are still real pressures.

Tariffs, global uncertainty, and shifting consumer priorities are all part of the picture.

This isn't a boom cycle, but it's not a downturn either.

It's a market where the middle is getting squeezed a little, and the companies that are clear about who they serve and how they operate are the ones pulling ahead.

So as you think about your own business, whether you're on the retail side, manufacturing, or somewhere in between, the question becomes pretty simple.

Are you positioned for the customer who is actually spending right now, and are you executing well enough to capture that demand?

That's where the opportunity is, and that's what's separating performance right now.

If you're finding these updates helpful, be sure to subscribe so you can stay up to speed each week on what's really happening across the furniture industry.