Furniture Industry News – November 15, 2024

Key Highlights:

Furniture Sales Show Signs of Recovery
October sales reached $11.18 billion, a 1.5% year-over-year increase and the first growth since February 2023.
Year-to-date sales still trail by 3.9%, but the gap is narrowing, signaling a potential industry turnaround.
Broader retail trends reflect consumer confidence, with total retail sales rising 2.8% year-over-year.

East Coast Port Labor Negotiations Stall
Disagreements over automation implementation have led to a potential January 15, 2025, strike.
Companies are preemptively placing container orders, with import volumes expected to surge before the Lunar New Year (January 29) and amid tariff concerns.

Domestic Manufacturing Gains Strategic Value
U.S.-based manufacturers like American Leather leverage lean production and domestic capabilities to respond to market shifts.
A projected refresh cycle in furniture purchases and rising home sales offer optimism for 2025, especially as tariff risks loom.

Major Retailer Adjustments
Companies like Macy’s diversify sourcing to regions outside China, including South America and other parts of Asia, underscoring the importance of flexible supply chains.

Company-Specific Updates
Purple Innovation faces potential Nasdaq delisting if its stock remains below $1 by May 2025. The company is exploring strategies to stabilize its share price.
Dorel Home reports a 14% drop in Q3 furniture segment revenues, citing weaker sales in fireplaces, futons, and dressers, though indoor seating and TV stands performed well.

Industry Trends to Watch:
Consumer Behavior: Strengthening confidence in home-related purchases could boost sales.
Supply Chain Shifts: Early container orders and alternative sourcing strategies highlight evolving trade dynamics.
Manufacturing Landscape: Domestic production offers adaptability, positioning U.S. manufacturers to weather global uncertainties.