Sales at luxury furniture chains tank as US housing market cools

Published

2 years ago

September 21, 2023

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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.

Entertainment

Tomorrowland: ‘Devastating’ blaze destroys main stage at major festival – two days before it was due to begin

Published

2 hours ago

July 17, 2025

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Tomorrowland: 'Devastating' blaze destroys main stage at major festival - two days before it was due to begin

A huge fire has destroyed the main stage of a major festival in Belgium – two days before it was due to begin.

Tomorrowland is a dance music event as big as Glastonbury – and David Guetta was due to perform.

Footage showed flames and thick plumes of black smoke engulfing the stage and spreading to nearby woodland on Wednesday.

The annual festival in the town of Boom, north of Brussels, is one of the biggest in Europe and attracts about 400,000 people over two consecutive weekends.

It is famous for its immersive and elaborate designs and attracts big names within dance music – including Guetta, best known for tracks When Love Takes Over and Titanium.

Dutch DJs Martin Garrix and Charlotte de Witte were also due to perform, along with the likes of Swedish House Mafia, Eric Prydz and Alok.

The festival’s website described the creative elements which went into the elaborate main stage.

The theme, described as Orbyz, was “set in a magical universe made entirely out of ice” and “full of mythical creatures”.

Organisers said no one was injured in the blaze but confirmed “our beloved main stage has been severely damaged”, adding they were “devastated”.

Spokesperson Debby Wilmsen added: “We received some truly terrible news today. A fire broke out on the Tomorrowland site … and our main stage was essentially destroyed there, which is truly awful.

“That’s a stage that took years to build, with so much love and passion. So I think a lot of people are devastated.”

Despite the fire, Tomorrowland organisers said they were still expecting 38,000 festivalgoers at DreamVille, the event’s campsite.

Politics

PM criticised over ‘appalling’ decision to suspend four Labour MPs

Published

2 hours ago

July 17, 2025

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Starmer suspends four Labour MPs for breaches of party discipline

Sir Keir Starmer has suspended four MPs for repeated breaches of party discipline.

Brian Leishman, Chris Hinchliff, Neil Duncan-Jordan and Rachael Maskell have lost the whip, meaning they are no longer part of Labour’s parliamentary party and will sit as independent MPs.

The suspension is indefinite pending a review.

Three other MPs have had their trade envoy roles removed: Rosena Allin Khan, Bell Ribeiro-Addy and Mohammed Yasin.

Politics latest: Suspended MPs defend their voting record

All seven had voted against the government’s welfare reforms earlier this month. However, it is understood this is not the only reason behind the decision, with sources citing “repeated breaches of party discipline”.

More than 100 MPs had initially rebelled against the plan to cut personal independent payments (PIP). Ultimately, 47 voted against the bill’s third reading, after it was watered down significantly in the face of defeat.

Ms Maskell was one of the lead rebels in the welfare revolt, and has more recently called for a wealth tax to fund the U-turn.

The York Central MP has spoken out against the government on a number of other occasions since the election, including on winter fuel and cuts to overseas aid.

Confirming the suspension, Ms Maskell told Sky News that she “doesn’t see herself as a rebel” but “somebody that is prepared to fulfil (her) role here of holding the executive to account and speaking truth to power”.

She stopped short of criticising the decision, saying: “I hold my hand out to the prime minister and hope he takes that and wants to reach back because I think it’s really important that we work together.”

Ms Maskell was first elected in 2015, while the other suspended MPs were newly elected last year.

Mr Hinchliff, the MP for North East Hertfordshire, has proposed a series of amendments to the flagship planning and infrastructure bill criticising the government’s approach.

Mr Duncan-Jordan, the MP for Poole, led a rebellion against the cut to the winter fuel payments while Alloa and Grangemouth MP Mr Leishman has been critical of the government’s position on Gaza.

Suspended Labour MPs clearly hit a nerve with Starmer

Tamara Cohen

Political correspondent

@tamcohen

After a tricky few weeks for the government, in which backbenchers overturned plans to cut back welfare spending, now a heavy hand to get the party into line.

All four suspended MPs appear to be surprised – and upset.

Three more have lost plum roles as trade envoys – all on the left of the party.

All were active in the rebellion against the government’s welfare reforms, and voted against the changes even after a series of U-turns – but were among 47 Labour MPs who did so.

When MPs were told after the welfare vote that Number 10 was “fully committed to engaging with parliamentarians”, this was not what they were expecting.

We’re told the reasons for these particular suspensions go wider – over “persistent breaches of party discipline” – although most are not high profile.

In the scheme of things, Jeremy Corbyn and John McDonnell rebelled against the Labour whip hundreds of times under New Labour, without being suspended.

But these MPs’ pointed criticism of the Starmer strategy has clearly hit a nerve.

Read Tamara’s analysis in full here

‘Couldn’t support making people poorer’

Mr Duncan-Jordan told Sky News that he understood speaking out against benefit cuts would “come at a cost” but said he “couldn’t support making disabled people poorer”.

Mr Leishman echoed that sentiment, saying: “I firmly believe that it is not my duty as an MP to make people poorer, especially those that have suffered because of austerity and its dire consequences.”

Both said they remain committed to the Labour Party and its values, suggesting they have no plans to join the new party being set up by former Labour leader Jeremy Corbyn and ousted MP Zarah Sultana.

Similarly Mr Hinchliff said in a brief statement: “I remain proud to have been elected as a Labour MP and I hope in time to return to the Labour benches.”

The suspensions will be seen as an attempt to restore discipline ahead of the summer recess following a number of rebellions that has forced the government into U-turns.

As well as watering down the welfare bill, some cuts to the winter fuel payment have been reversed, leaving Chancellor Rachel Reeves with a fiscal blackhole to fill.

However, the move risks creating further divisions with a number of Labour MPs criticising the decision.

Starmer ‘rolling out the carpet to Reform’

Ian Byrne, Labour MP for Liverpool West Derby, said he was “appalled” by the suspensions as he and 44 others voted against welfare cuts.

He said this isn’t the first time the Starmer leadership has “punished MPs for standing up for what’s right”, as he and six others were suspended last year for voting against the two-child benefit cap.

“These decisions don’t show strength. They are damaging Labour’s support and risk rolling out the red carpet for Reform,” he added.

Richard Burgon, who was also temporarily suspended in the two-child benefit cap revolt, said he had hoped the leadership would take a different approach to backbenchers.

“Sadly, it isn’t yet doing so. To help stop a Reform government, it really must do so,” he said.

Jon Trickett, Labour MP for Normanton and Hemsworth, said “it’s not a sin to stand up for the poor and disabled”, adding: “Solidarity with the suspended four.”

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