Today is February 13, 2026, and welcome back to Furniture Industry News.

I'm glad you're here.

This week we're looking at a mix of policy shifts, enforcement activity, corporate earnings and some broader economic signals that all tie back to one central question for our where is demand headed and how should we be positioning our businesses right now?

Let's start with trade policy, because tariffs are once again front and center.

Commerce Secretary Howard Lutnick recently told lawmakers that the administration's tariff strategy is doing exactly what it was intended to do.

According to his testimony, higher tariffs are shrinking imports and encouraging more domestic production, including in furniture manufacturing.

The argument is that these policies are pushing companies to reshore operations and reduce dependence on overseas supply chains.

For domestic manufacturers, that message may sound encouraging.

For importers and retailers who rely heavily on global sourcing, it creates a different set of calculations.

The effective average tariff rate in the United States has jumped sharply, moving from roughly 2% in 2024 to nearly 10% in 2025.

That is the highest level seen in decades.

And that change does not happen in a vacuum.

There is also growing discussion about the consumer impact.

Research cited in recent coverage suggests that tariff policy reduced the average household's annual income by about 1,000 dol last year.

That matters.

In our business, furniture is a discretionary purchase for most families.

When household budgets tighten, big ticket purchases are often delayed, traded down or skipped entirely.

So on one side, policymakers are framing tariffs as a long term investment in domestic production.

On the other side, industry participants are watching to see how higher costs ripple through retail pricing and consumer demand.

There is also legal uncertainty in the background.

A pending Supreme Court case could affect the authority under which certain tariffs were imposed.

Administration officials have downplayed the risk of major change.

But for planners trying to forecast costs, even a small degree of uncertainty adds complexity.

Trade enforcement is also heating up in the bedding category.

The U.S. department of Commerce has opened investigations into whether mattress producers in Malaysia, Mexico and Poland are evading existing anti dumping duties.

These probes focus on whether products are being routed or structured in ways that avoid established duties.

For companies involved in mattress imports, this is not a minor development.

Enforcement actions like this can lead to retroactive duties, compliance reviews and increased scrutiny of documentation.

Even companies that are fully compliant may feel the ripple effects if sourcing shifts again.

It is another reminder that global supply chains remain under close watch, and documentation and transparency matter more than ever.

While trade and enforcement create one set of pressures, consumer behavior is creating another, especially in the digital space.

New research shows that many Consumers are uneasy about how their personal data is used for pricing decisions.

In particular, individualized or dynamic pricing strategies based on browsing history or purchase behavior are raising concerns.

A significant share of consumers say they would consider abandoning a retailer if they believed pricing was being adjusted specifically for them based on personal data.

For furniture retailers investing in personalization tools and E commerce platforms, this is an important signal.

Personalization can improve engagement and conversion, but when it crosses into perceived unfairness, trust erodes quickly.

Furniture shoppers are already comparison driven.

They research, they price check, they talk to friends.

If they believe pricing is opaque or tailored against them, that can create friction at exactly the wrong moment in the buying process.

This does not mean personalization is going away, but it does suggest that transparency and fairness will be increasingly important as retailers refine pricing strategies.

In a high ticket category like ours.

Trust is everything.

Now let's turn to corporate performance.

Leggett and Platt, a diversified supplier across bedding, furniture and specialty products, reported that full year sales declined about 7% to approximately $4.05 billion.

Demand softness in residential markets and shifts at key customers weighed on volumes.

Despite the drop in sales, the company maintained flat adjusted earnings per share by focusing on cost control, restructuring and debt reduction.

Management emphasized improving cash flow and strengthening the balance sheet.

In some segments, volume declines were in the double digits, while others saw more moderate drops.

The overall message was cautious but disciplined Protect margins where possible, reduce leverage and maintain flexibility.

For suppliers across the industry, this is a familiar playbook.

When demand softens, operational efficiency and cash management become the primary levers.

Growth stories take a backseat to stability.

And that brings us to the broader economic backdrop.

On the retail side, there are signs of resilience.

January retail data showed modest month to month gains and solid year over year growth, marking the fourth consecutive monthly increase in core retail sales.

Consumers are still spending.

That is important.

It suggests that overall demand has not collapsed under the weight of higher prices and interest rates.

But housing tells a different story.

Pending home sales fell sharply in December, down 9.3% from November and down 3% compared to a year earlier.

Pending sales are often viewed as a leading indicator of future housing activity.

And as everyone in this industry knows, housing drives furniture demand.

Fewer contracts today can mean fewer move related purchases in the months ahead.

When you put these pieces together, the picture is mixed.

Core retail activity is holding up.

Consumers are still opening their wallets.

At the same time, housing activity is uneven and affordability pressures remain.

Add in tariff driven cost increases and rising sensitivity around pricing fairness and the operating environment becomes more complex.

So what does this mean for furniture professionals?

First, trade policy is not just a background issue.

It is directly affecting cost structures, sourcing decisions and potentially, consumer demand.

Second, compliance risk is real, especially in categories like betting, where enforcement actions are underway.

Third, digital strategy needs to balance personalization with transparency.

And finally, demand signals require close monitoring.

Retail spending may be stable, but housing softness could create headwinds for big ticket purchases.

We are in a period where flexibility matters.

Cost forecasting, inventory planning, pricing strategy, and customer trust all intersect.

None of these trends alone define the year ahead, but together they shape the terrain we are operating on.

That is your update for today, February 13, 2026.

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