Furniture Market Signals, Price Worries, and a Lovesac Slowdown

Originally published December 13, 2024. This version was rebuilt from the University of Michigan survey, the BLS consumer price index and Lovesac's results for the FIN archive, and the facts are as of that date.

Mid-December 2024 showed shoppers feeling better and buying big items early, partly because they expected tariffs to push prices up. Not every furniture brand was benefiting yet.

The short version

• The University of Michigan's preliminary December sentiment rose to 74.0, a seven-month high.
• BLS said consumer prices rose 2.7% over the 12 months to November.
• Lovesac reported third-quarter net sales of $149.9 million, down 2.7%.

Signs of recovery

The University of Michigan said consumer sentiment improved for the fifth consecutive month to its highest reading in seven months. A surge in buying conditions for durables pushed the current conditions index up more than 20%.

The survey said the jump in durables was mainly a perception that purchasing durables now would enable buyers to avoid future price increases. Nearly 20% of consumers mentioned tariffs, up from 10% in November. Buyers moving early to beat price increases can lift furniture sales for a few months, then leave a gap.

Prices creep up

BLS said the Consumer Price Index rose 0.3% in November and 2.7% over 12 months. The index excluding food and energy rose 0.3% for the fourth month in a row.

The household furnishings and operations index rose 0.6% in November, a sign that some furniture-related prices were starting to firm.

Retailer performance

Lovesac reported third-quarter net sales of $149.9 million, down 2.7% from $154.0 million. Its chief executive said near-term headwinds for the category persisted through the pre-election period, but that the company gained market share.

Lovesac said it would soft-launch a reclining seat in the fourth quarter, part of a push to widen its range as demand stayed soft.

Closing thoughts

Shoppers were starting to buy ahead of expected price increases, which helped sentiment and durable goods. Brands still had to win share in a category that had not yet recovered.

Related on FIN

• Furniture Shoppers Are Holding Back
• Furniture Sales Rose. Costs Are Rising Faster.

Sources

• University of Michigan, Surveys of Consumers, preliminary December 2024
• U.S. Bureau of Labor Statistics, Consumer Price Index, November 2024
• The Lovesac Company, Third quarter fiscal 2025 results (SEC exhibit 99.1)