Furniture Sales Above Last Year, Port Talks Stall, and Purple's Slump

Originally published November 15, 2024. This version was rebuilt from the Census Bureau's retail report, the ILA's message to members and Purple's third-quarter release for the FIN archive, and the facts are as of that date.

The middle of November 2024 brought a small year-over-year gain for furniture stores, a setback at the port bargaining table and a weak quarter for a well-known mattress brand.

The short version

• Census said furniture and home furnishings store sales were 1.5% above October 2023.
• The ILA said talks broke down when employers raised their intent to implement semi-automation.
• Purple reported third-quarter net revenue of $118.6 million, down 15.3%.

Furniture sales above last year

The Census Bureau's advance report showed furniture and home furnishings store sales down 1.3% in October from September but up 1.5% from October 2023.

A gain over a weak 2023 was a modest improvement. Monthly sales were still uneven, and stores had not yet shown two good months in a row.

East Coast port labor negotiations face challenges

The ILA told members that after a day and a half of productive talks, negotiations broke down when management introduced their intent to implement semi-automation, which the union said contradicted earlier assurances.

The union said it supports technology that improves safety and efficiency only when a human being remains at the helm. With the contract extension running to January 15, 2025, importers faced another strike risk.

Update. The two sides reached a tentative six-year agreement on January 8, 2025, averting any work stoppage.

Challenges for Purple Innovation

Purple said third-quarter net revenue declined 15.3% to $118.6 million from $140.0 million. It cited industry-wide demand softness for home products, lower advertising spend and lapping a 2023 product launch.

Direct-to-consumer revenue fell 11.7% and wholesale fell 20.1%, while showroom revenue was about flat. The adjusted EBITDA loss narrowed to $6.4 million from $16.3 million.

Key takeaways

Furniture stores were finally edging above last year, but port risk and weak mattress demand showed how fragile that recovery was heading into the holidays.

Related on FIN

• Furniture Store Sales Fell 2.7%. Every Other Category Grew.
• The Freight Mafia's New Playbook

Sources

• U.S. Census Bureau, Advance monthly retail sales, October 2024
• International Longshoremen's Association, Message to members on the breakdown of negotiations with USMX (Nov. 13, 2024)
• International Longshoremen's Association, Joint statement regarding Master Contract (Oct. 3, 2024)
• International Longshoremen's Association, ILA and USMX tentative agreement (Jan. 8, 2025)
• Purple Innovation, Third quarter 2024 results (Nov. 4, 2024)