The current earnings season has made reluctance among shoppers to make big-ticket purchases prominent. Higher interest rates, stocky inflation, a stagnant housing market, the gradual depletion of savings and changing consumer preferences toward services over goods have led to thissignificant concern among retailers.
“Furniture is more exposed” to this shift in spending pattern than appliances, Shanton Wilcox, U.S. manufacturing lead at PA Consulting, told Yahoo Finance. The manufacturing costs of furniture are more as these are often made in the United States, where costs are higher as opposed to appliances that are normally manufactured abroad, where costs are lower.
Still, some top-ranked furniture stocks including American Woodmark AMWD, MillerKnoll MLKN, Ethan Allen Interiors ETD and HNI HNI arw set to win despite industry woes.
Business Shutdown and Bankruptcies in Furniture Industry
The impact of reduced consumer spending has been felt acutely by some privately held companies in the furniture sector.