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US furniture retailers are seeing a slowdown in sales as Americans who are already struggling to afford homes in today’s market aren’t shelling out for a new dining table or couch.

Last week, high-end furniture retailer RH reported $800 million in revenue in the three months ended July 29 — a 19% drop from last year’s period, when revenues hit $992 million.

The company attributed the dip to the stalling housing market, where mortgage rates are sitting at the highest level since 2001, forcing many homeowners in major US cities to sell at a loss.

“We continue to expect the luxury housing market and broader economy to remain challenging throughout fiscal 2023 and into next year as mortgage rates continue to trend at 20-year highs,” the company said in its earnings report.

Williams-Sonoma, the San Francisco-based firm behind pricey interior stores Pottery Barn and West Elm, posted its second-quarter earnings late last month, which showed year-over-year decreases across the board.

Aside from net revenues falling 13% from last year, to $1.86 billion, Williams-Sonoma’s profits also fell to $757.56 million — down from $928.81 million in 2022 — while operating income, comparable brand revenue and merchandise inventories also decreased.

In addition, Williams-Sonoma reported a 20% revenue decline for West Elm, and a 10% dip in sales for Pottery Barn.

Virginia-based luxury furniture retailer Hooker Furnishings also reported losses for the quarter, when revenue slid to $97.8 million — down 36% from $152.91 million a year ago.

Net incomes at the manufacturer — which sells its home goods at Wayfair and Macy’s — also took a massive hit year over year, from $5.54 million to a dismal $785,000.

Hooker’s chief executive Jeremy Hoff also attributed the company’s losses to mortgage rates, which have “slowed down housing activity.”

“The continued rise in interest rates has suppressed customer — consumer confidence,” Hoff added during an earnings call with investors following the company’s earnings report.

Perhaps also because of sky-high benchmark 30-year home loans — which climbed to 7.23% from 7.09% last month, per mortgage buyer Freddie Mac — investors also appear insecure about the future of the furniture industry, as shares of RH fell nearly 18%, to $313.23, in the past five days — since the company reported its second-quarter earnings.

A year ago, the average 30-year home loan rate was 5.55%.

Hooker Furnishing’s share price, meanwhile, fell nearly 9%, to $19.16, while Williams-Sonoma’s stock slipped less than 1%, to $142.52, in the same five-day period

Representatives for RH, Williams-Sonoma and Hooker Furnishings did not immediately respond to The Post’s request for comment.

The shift in consumer spending on furniture makes sense, as home buyers face an ongoing affordability crisis and consumer spending is expected to shrink in early 2024 the first quarterly decline since the start of the pandemic, according to Bloomberg’s latest Markets Live Plussurvey.

More than half of 526 respondents, or 56%, believe that personal consumption in the US will turn negative in the new year, while another 21% said the reversal will happen even sooner, in the final quarter of 2023, Bloomberg found.

The outlet blamed the pessimism on high borrowing costs affecting household budgets and COVID-era savings drying out.

Thus, the “nepo baby” discussion has found its way from social media into the real estate market, where recent findings from the brokerage Redfin reveal that a significant portion of young homebuyers used family money to afford a down payment for a home. 

According to Redfins survey of more than 500 buyers under 30 years old, 38% had financial assistance from relatives for their down payment. 

The situation is significantly a result of the current crisis of housing unaffordability, especially as inflation keeps its grip tight on the American economy.

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Hollywood writers reach ‘tentative’ deal to end strike over AI and compensation

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September 25, 2023

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Hollywood writers reach 'tentative' deal to end strike over AI and compensation

A “tentative” deal has been reached to end a long-running strike by writers in Hollywood.

The Writers Guild of America (WGA) announced the deal with the Alliance of Motion Picture and Television Producers (AMPTP), the group which represents studios, streaming services and producers in negotiations.

A statement from the WGA said: “We have reached a tentative agreement on a new 2023 MBA, which is to say an agreement in principle on all deal points, subject to drafting final contract language.

“We can say, with great pride, that this deal is exceptional – with meaningful gains and protections for writers in every sector of the membership.”

Most of the writers’ demands have been met

After 146 days on the picket line, Hollywood’s writers are finally ready to put pen to paper and sign an agreement with the studio bosses who pay their wages.

My understanding from speaking to sources on both sides of the standoff, is that most of the writers’ demands have been met with this deal, including greater royalty payments and assurances about the role of Artificial Intelligence in future TV and filmmaking.

If approved by the Writers Guild of America members, which seems all but guaranteed, it will bring an end to the second longest strike in the union’s history. It is also the broadest industry strike in decades, with more than 100,000 actors joining them on the picket.

Hollywood will not fully bounce back. Until actors return to work, filming on shows like the Last Of Us and Stranger Things, which have been on hold for months now, cannot resume. But talk shows like Jimmy Kimmel Live! and Saturday Night Live, which don’t rely on actors, could resume filming as soon as this week.

Speaking to people on the picket line, they framed this strike action as about more than just Hollywood. Some said AI was not just “anti-creative” but that it presented an existential threat not just to their craft but to humankind.

This deal will be seen as a major victory in securing protections over their TV and film credits and payments in the wake of AI.

The three-year contract agreement – settled on after five days of renewed talks by negotiators from the WGA and the AMPTP – must be approved by the guild’s board and members before the strike officially ends.

Read more on Hollywood strikes:
How much of a threat is AI?

The terms of the deal were not immediately announced.

More on Hollywood

Related Topics:

The statement added: “To be clear, no one is to return to work until specifically authorised to by the Guild.

“We are still on strike until then. But we are, as of today, suspending WGA picketing. Instead, if you are able, we encourage you to join the SAG-AFTRA picket lines this week.”

The agreement comes just five days before the strike would have become the longest in the guild’s history, and the longest Hollywood strike in decades.

About 11,500 members of the Writers Guild of America walked off the job on 2 May over issues of pay, the size of writing staffs on shows and the use of artificial intelligence (AI) in the creation of scripts.

SAG-AFTRA actors during their ongoing strike, in Los Angeles (file pic)
Image:
SAG-AFTRA actors during their ongoing strike, in Los Angeles (file pic)

In July, the SAG-AFTRA actors’ union started its own walkout which is yet to be resolved.

It said in a statement: “SAG-AFTRA congratulates the WGA on reaching a tentative agreement with the AMPTP after 146 days of incredible strength, resiliency and solidarity on the picket lines.

“While we look forward to reviewing the WGA and AMPTP’s tentative agreement, we remain committed to achieving the necessary terms for our members.

“We remain on strike in our TV/Theatrical contract and continue to urge the studio and streamer CEOs and the AMPTP to return to the table and make the fair deal that our members deserve and demand.”

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Business

Hollywood writers reach ‘tentative’ deal to end strike over AI and compensation

Published

2 hours ago

on

September 25, 2023

By

Hollywood writers reach 'tentative' deal to end strike over AI and compensation

A “tentative” deal has been reached to end a long-running strike by writers in Hollywood.

The Writers Guild of America (WGA) announced the deal with the Alliance of Motion Picture and Television Producers (AMPTP), the group which represents studios, streaming services and producers in negotiations.

A statement from the WGA said: “We have reached a tentative agreement on a new 2023 MBA, which is to say an agreement in principle on all deal points, subject to drafting final contract language.

“We can say, with great pride, that this deal is exceptional – with meaningful gains and protections for writers in every sector of the membership.”

Most of the writers’ demands have been met

After 146 days on the picket line, Hollywood’s writers are finally ready to put pen to paper and sign an agreement with the studio bosses who pay their wages.

My understanding from speaking to sources on both sides of the standoff, is that most of the writers’ demands have been met with this deal, including greater royalty payments and assurances about the role of Artificial Intelligence in future TV and filmmaking.

If approved by the Writers Guild of America members, which seems all but guaranteed, it will bring an end to the second longest strike in the union’s history. It is also the broadest industry strike in decades, with more than 100,000 actors joining them on the picket.

Hollywood will not fully bounce back. Until actors return to work, filming on shows like the Last Of Us and Stranger Things, which have been on hold for months now, cannot resume. But talk shows like Jimmy Kimmel Live! and Saturday Night Live, which don’t rely on actors, could resume filming as soon as this week.

Speaking to people on the picket line, they framed this strike action as about more than just Hollywood. Some said AI was not just “anti-creative” but that it presented an existential threat not just to their craft but to humankind.

This deal will be seen as a major victory in securing protections over their TV and film credits and payments in the wake of AI.

The three-year contract agreement – settled on after five days of renewed talks by negotiators from the WGA and the AMPTP – must be approved by the guild’s board and members before the strike officially ends.

Read more on Hollywood strikes:
How much of a threat is AI?

The terms of the deal were not immediately announced.

More on Hollywood

Related Topics:

The statement added: “To be clear, no one is to return to work until specifically authorised to by the Guild.

“We are still on strike until then. But we are, as of today, suspending WGA picketing. Instead, if you are able, we encourage you to join the SAG-AFTRA picket lines this week.”

The agreement comes just five days before the strike would have become the longest in the guild’s history, and the longest Hollywood strike in decades.

About 11,500 members of the Writers Guild of America walked off the job on 2 May over issues of pay, the size of writing staffs on shows and the use of artificial intelligence (AI) in the creation of scripts.

SAG-AFTRA actors during their ongoing strike, in Los Angeles (file pic)
Image:
SAG-AFTRA actors during their ongoing strike, in Los Angeles (file pic)

In July, the SAG-AFTRA actors’ union started its own walkout which is yet to be resolved.

It said in a statement: “SAG-AFTRA congratulates the WGA on reaching a tentative agreement with the AMPTP after 146 days of incredible strength, resiliency and solidarity on the picket lines.

“While we look forward to reviewing the WGA and AMPTP’s tentative agreement, we remain committed to achieving the necessary terms for our members.

“We remain on strike in our TV/Theatrical contract and continue to urge the studio and streamer CEOs and the AMPTP to return to the table and make the fair deal that our members deserve and demand.”

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World

Florida: Woman whose remains were found in alligator’s mouth identified by police

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5 hours ago

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September 25, 2023

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Florida: Woman whose remains were found in alligator's mouth identified by police

Police have identified a woman whose remains were found in the mouth of a 13ft alligator in Florida.

The body of 41-year-old Sabrina Peckham was pulled from a canal in Largo, about 20 miles west of Tampa, after a witness spotted her in the alligator’s mouth, the Pinellas County Sheriff’s Office said.

The animal was “humanely killed”, the sheriff’s office said, and the coroner’s office will perform a post-mortem examination to determine the official cause of death, but it is suspected Ms Peckham was killed by the alligator.

Sabrina Peckham (left) and her daughter Breauna Dorris
Image:
Sabrina Peckham (L), pictured with her daughter Breauna Dorris, has been identified as the victim

Ms Peckham’s daughter said her mother was homeless and lived near the water, and countered claims her mother had been taunting the animal.

Breauna Dorris wrote on Facebook: “Some details I would like to share is that my mother did not ‘taunt’ the alligator as some are saying in the news outlets comments.

“My mother was a part of the homeless population that lived in the nearby wooded area.

“It is believed that she may have been walking to or from her campsite near the creek in the dark and the alligator attacked from the water.”

She added: “No matter how you put it, no one deserves to die like this.”

A GoFundMe page has been set up for Ms Peckham to raise money for funeral costs, which has raised nearly $6,000 so far.

Witness ‘threw a rock at the alligator’

The alligator was spotted by Jamarcus Bullard, who saw the reptile and a body in the water on Friday afternoon.

“I threw a rock at the gator just to see if it was really a gator,” he told a TV affiliate of NBC News, Sky News’ US partner network.

“It pulled the body, like it was holding on to the lower part of the torso, and pulled it under the water.”

Read more:
Hunters kill record-breaking alligator after all-night battle
Man survives alligator attack by ‘grabbing its teeth, tongue and snout’
Man dies in alligator-filled lake while looking for frisbees

Jamarcus Bullard said he saw the alligator and a body in the water on Friday afternoon Pic: NBC
Image:
Jamarcus Bullard said he saw the alligator and a body in the water. Pic: NBC

Mr Bullard said he started recording on his phone and contacted the authorities.

The discovery has left some locals nervous, with Jennifer Dean telling TV station WFLA that her children frequently walk by the canal.

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