Sales at luxury furniture chains tank as US housing market cools

Published

2 years ago

September 21, 2023

admin

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.

Sports

Pirates’ Jones having surgery, won’t return in ’25

Published

2 hours ago

May 21, 2025

admin

Pirates' Jones having surgery, won't return in '25

ESPN News Services

May 21, 2025, 12:35 PM ET

Pittsburgh Pirates right-hander Jared Jones will undergo surgery on his right elbow Wednesday and will miss the remainder of the season, the team announced.

Jones, who was slated to be the team’s No. 2 starter this season, has been on the injury list with a UCL sprain in his right elbow. His recovery was trending in the right direction before a setback last week in which he felt discomfort while doing long tosses (100 feet).

Pirates senior director of sports medicine Todd Tomczyk said Jones, 23, visited elbow surgeon Dr. Keith Meister on Tuesday and made the decision to proceed with the surgery. A time frame for Jones’ return has yet to be established.

Jones went 6-8 with a 4.14 ERA in 22 starts during his rookie season in 2024, though he did miss time because of a lat injury.

Pittsburgh had hoped Jones would be featured near the top of the rotation, along with reigning National League Rookie of the Year Paul Skenes and veteran Mitch Keller.

Tomczyk said surgery was one of the options presented to Jones at the time of the injury, but Jones, with the support of the club and other medical experts, opted for rehab to give him a “fighting chance” to pitch in 2025.

Jones was shut down for six weeks, then began throwing from 60 feet in late April without issue. It wasn’t until the program was extended to 100 feet that Jones felt discomfort.

First baseman Enmanuel Valdez will also miss the rest of the season after having surgery on his left shoulder.

The Associated Press and Field Level Media contributed to this report.

US

Trump ambushes South African president by playing video alleging ‘genocide’ in South Africa

Published

2 hours ago

May 21, 2025

admin

Trump ambushes South African president by playing video alleging 'genocide' in South Africa

Donald Trump has ambushed South Africa’s president during a White House meeting by playing a video purportedly showing evidence of a “genocide” of white people in the African country.

The US president, who was hosting leader Cyril Ramaphosa in the Oval Office, said the footage showed the graves of thousands of white farmers.

Mr Ramaphosa sat quietly and mostly expressionless while a montage of videos was played, and he later said: “I’d like to know where that is because this [the videos] I’ve never seen”.

The lights had been dimmed in the room as videos were shown, including of South African officials allegedly calling for violence against white farmers.

South Africa has rejected the allegation that white people are disproportionately targeted by crime.

The videos include one of a communist politician playing a controversial anti-apartheid song that includes lyrics about killing a farmer.

Mr Trump accused South Africa of failing to address the killing of white farmers. “People are fleeing South Africa for their own safety,” the US president said. “Their land is being confiscated and in many cases they’re being killed.”

Alluding to people in the videos, Mr Trump said: “These are people that are officials and they’re saying… kill the white farmer and take their land.”

The US president then displayed printed copies of articles that he said showed white South Africans who had been killed, saying “death, death” as he flipped through them.

He added of one article: “Here’s burial sites all over the place, these are all white farmers that are being buried.”

South African leader rejects allegations

Mr Ramaphosa pushed back against Mr Trump’s accusations, by responding: “What you saw, the speeches that were being made, that is not government policy. We have a multi-party democracy in South Africa that allows people to express themselves, political parties to adhere to various policies.

“And in many cases or in some cases, those policies do not go along with government policy.

“Our government policy is completely, completely against what he [a person in the video montage] was saying. Even in the parliament. And they are a small minority party which is allowed to exist in terms of our constitution.”

Mr Ramaphosa also said of the behaviour alleged by Mr Trump: “We are completely opposed to that.”

Mr Ramaphosa said there was crime in South Africa, and the majority of victims were black. Mr Trump cut him off and said: “The farmers are not black.” The South African president responded: “These are concerns we are willing to talk to you about.”

Mr Trump has cancelled aid, expelled South Africa’s ambassador and offered refuge to white minority Afrikaners based on racial discrimination claims which Pretoria says are unfounded.

Experts in South Africa say there is no evidence of white people being targeted, although farmers of all races are victims of violent home invasions in a country that suffers from a very high crime rate.

US

Universal opens $7bn Epic Universe theme park to rival Disney World in Florida

Published

2 hours ago

May 21, 2025

admin

Universal opens bn Epic Universe theme park to rival Disney World in Florida

Universal has opened a new theme park to rival Disney World in Florida.

NBCUniversal owner Comcast, which also owns Sky News, is rewriting the Orlando travel itinerary with its $7bn Epic Universe.

The 750-acre park features five worlds themed around movie and game franchises NBCUniversal owns or licenses.

These include Super Nintendo World, complete with a Mario Kart ride, and the immersive Wizarding World of Harry Potter – Ministry of Magic.

How to Train Your Dragon – Isle of Berk, Celestial Park and Dark Universe complete the park.

The project is the first major theme park to open in the US in more than 20 years and marks Comcast’s largest investment in Universal attractions since it gained control of the business in 2011.

Comcast president Mike Cavanaugh said: “This is the one part of the media ecosystem that is not vulnerable to screen-shifting. It’s still beloved as a thing to do with friends and family.

“It would be silly not to be stepping on the gas.”