Welcome back to another episode of Furniture Industry News.

Today is Friday, September 12, 2025, and we've got a lot to cover.

From shifting consumer sentiment here in the US to international buying trends, to some key financial updates from major players in the industry, this episode will keep you up to speed on what's happening right now in the furniture world.

Let's start with something on everyone's the holiday season.

Deloitte is forecasting holiday sales growth this year, but it's expected to be slower than what we've seen in the past couple of years.

Overall, retail sales are projected to rise between 3 and 4%.

That's down from the growth rates we saw last year, and it reflects a more cautious consumer.

The interesting twist, though, is e commerce.

Online sales are expected to grow at a faster clip, somewhere between 10 and 13%.

For the furniture industry, that reinforces what many of us already know Digital remains strong.

Shoppers may be watching their budgets more closely, but when they're spending, they're increasingly comfortable doing it online.

That means retailers who have been investing in omnichannel, in online showrooms and in frictionless digital experiences are positioning themselves to benefit from this shift.

But consumer confidence plays a big role in those holiday sales, and in September, consumer sentiment fell to a four month low.

Shoppers are worried about higher prices and uncertainty in the broader economy.

For furniture professionals, this is a reminder that while traffic might remain steady, closing rates could be tougher.

Customers may take longer to make decisions, or they might be opting for smaller ticket items.

The mood isn't disastrous, but it's clear that people are being more cautious with big purchases.

Sales teams and marketing efforts will likely need to adapt, focusing on reassurance value and clear reasons why now is still a good time to buy.

While U.S. shoppers are showing some hesitation, let's look at what's happening globally.

Over in Shanghai, Intertextile just wrapped up a major event that saw a huge jump in international buyers.

Attendance from outside of China was up significantly, a sign that the global supply chain and international sourcing conversations are alive and well for the furniture and home textiles space.

This matters because it signals growing confidence in international trade.

Even though there have been plenty of disruptions in recent years.

Tariffs, shipping issues, pandemic restrictions the fact that buyers are returning in such strong numbers suggests people are again willing to look overseas for new products and opportunities.

For manufacturers and retailers who rely on imported textiles and fabrics, this could open up new options and fresh ideas heading into the next buying cycles.

Speaking of tariffs, let's talk about Ashley furniture.

They've recently announced that they're eliminating the separate tariff surcharges that had been added to invoices and instead rolling those costs directly into updated price increases.

What this really means is that instead of a surcharge line item, retailers will now see those costs baked into the base price of goods.

It's not necessarily better or worse, but it does simplify the way pricing is presented.

For retailers, it's one less variable fee to explain to customers.

It also gives Ashley a bit more transparency in how they structure their pricing, given how tariffs have been such a moving target.

This is Ashley's way of streamlining the system and keeping things predictable for their partners.

Now let's move into some company financial updates, starting with rh.

The company just posted a strong second quarter with gains across key metrics.

They're continuing to execute on their high end strategy and it's paying off.

So sales are up, profits are strong, and their luxury positioning seems to be resonating with customers even in a slower economy.

RH has been leaning into design galleries and larger experiences.

And while not every retailer can mimic that model, their success shows there's still room at the top end of the market for furniture professionals.

This is a good reminder that while middle market customers may be hesitating, there's resilience at the higher end where buyers are less price sensitive.

But not every company is having such a good quarter.

Hooker Furnishings reported wider losses in Q2 even as they talk about being positioned for a return to profitability.

Sales declined, expenses were higher, and the bottom line took a hit.

Still, leadership is optimistic that their restructuring efforts and cost cutting measures will start to turn things around for the broader industry.

Hooker's results highlight how tough this environment is for manufacturers that are more exposed to middle market price points.

Profitability is hard to come by when consumer demand is shaky and costs remain elevated.

On a steadier note, lovesac posted results that were more stable.

Their second quarter didn't have huge gains, but it didn't have big losses either.

The company continues to roll out its snug line, essentially expanding the ways it can use its modular sofa system to appeal to customers looking for flexibility lovesac's model of customization, sustainability and clever marketing has given it a unique space in the industry.

For retailers watching their moves, the lesson might be that having a distinct, recognizable product line can provide a buffer against wider market swings.

They may not be immune to challenges, but when customers know you for something specific, you have a foundation to build on.

When you step back and look at these different reports together, a few themes emerge.

First, the consumer environment is cautious.

People aren't shutting their wallets, but they're more deliberate, and that's reflected in lower sentiment numbers.

Second, companies that have found a strong niche, whether it's luxury like RH or modular innovation like lovesac, are holding up better than those competing in the crowded middle.

And third, the global trade environment is showing signs of renewed energy, which could influence sourcing and product development over the next year.

It's also worth remembering that we're heading into the most important stretch of the year for retailers.

The holiday season can make or break the financial picture.

And with E Commerce expected to be strong, the there's opportunity for those who are ready to meet customers where they are, whether that's online, in showrooms or through hybrid approaches.

The winners will likely be the ones who can deliver value, convenience and confidence.

And that wraps up today's update.

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