Hello and welcome to Furniture Industry News.

It's November 7, 2025.

Today we'll be looking at the latest economic indicators influencing consumer behavior, hearing directly from an industry leader on their strategy, and then running through some standout quarterly earnings reports and new retail strategies.

Finally, we'll touch on some new data about how people are really using their homes.

So let's get right into it.

First up the big picture, the latest data from the University of Michigan's Consumer Sentiment Survey shows the index falling to 50.3 in November.

That's uncomfortably close to a record low driven by worries about the ongoing federal government shutdown.

Concerns are spreading across most demographics year ahead.

Inflation expectations have also ticked up slightly to 4.7%.

But on a more positive note, the Mortgage Bankers association reports that home affordability improved for the fourth straight month in September.

The national median mortgage payment has dipped slightly to $2,067.

This could free up discretionary spending for home goods.

Rounding out the economic overview is the October jobs report which showed an increase of 42,000 private sector jobs and a 4.5% year over year pay increase.

The trade, transportation and utilities sectors saw the most significant gains.

For an insider's view, we turn to insights from Todd Wanick, CEO of Ashley Furniture from High Point Market.

Despite mixed economic signals, his perspective is optimistic.

He noted that Ashley saw one of its best markets in years for attendance on tariffs.

His view is that the industry is Adapting to the 20 to 30% rates by re merchandising to maintain critical price points.

A key part of Ashley's strategy has been to lean into its US factories, moving production of case goods and upholstery stateside.

He pointed to the huge success of their domestically produced case goods using paper, laminate and optics embossed materials.

Looking ahead, Wonex forecast is bullish, referencing a potential 30% growth forecast for the industry in 2026.

That optimism is reflected in some strong third quarter performance reports.

In the betting sector, Somnigroup International is bucking industry trends.

They reported a staggering 63.3% increase in net sales record reaching $2.12 billion driven by their acquisition of mattress firm.

Their net income climbed an impressive 36.5%.

In luxury retail, our house also posted a record third quarter with net revenue up 8% to $344.6 million.

This signals that the high end consumer is still spending and the Canadian retailer Lyon's Furniture Ltd also saw positive results with system wide sales increasing by 3.7% in the third quarter with which they attributed to strong performance in furniture and appliances.

Finally, let's shift to the end consumer.

A recent survey commissioned by Stressless looked at our habits at home.

It found that most people have two claimed spots in their home, a favorite chair, a specific side of the sofa, and that over half would be offended if someone else sat there.

When asked about their favorite type of chair for relaxation, the recliner was the clear winner cited by 41% of respondents.

The number one reason given was comfort.

The survey also found that the bedroom is considered the top sanctuary for peace and quiet in the home, highlighting its importance as a private retreat.

Retailers are also investing in their physical footprints.

Schewells Home is deepening its roots in Virginia, having just announced the acquisition of Central Furniture in Richmond.

This is their second acquisition in that market this year, and Schewells is retaining all of Central Furniture's employees.

At the same time, major players are experimenting with new formats.

Wayfair has unveiled a strategy for a smaller format prototype store, planning to open a 70,000 square foot location in Columbus, Ohio in late 2026.

This is a departure from their much larger stores, an experiment to test a more nimble and efficient model that the whole industry will be watching.

And that brings us to the end of this week's update.

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