Furniture Retail's People Problem. You Can't Grow If They're All Leaving

Originally published May 2, 2025. This version was rebuilt from Wayfair, Sleep Number and Havertys first quarter results and the BLS April jobs report for the FIN archive, and the facts are as of that date.

The first round of 2025 first-quarter results from home furnishings retailers showed a sector holding steady at best.

The short version

• Wayfair reported total net revenue of $2.7 billion, roughly flat.
• Sleep Number said net sales fell 16%.
• Havertys said sales fell 1.3% to $181.6 million.
• Furniture and home furnishings retailers shed 2,000 jobs in April, per the BLS.

Wayfair holds steady

Wayfair reported first-quarter total net revenue of $2.7 billion, up $1 million and close to flat from a year earlier, with U.S. revenue growing. Holding flat while the category shrank meant it was taking share.

Sleep Number shrinks

Sleep Number said net sales fell 16% to $393 million, with retail comparable sales down 15%. Under a new CEO, the company targeted $80 to $100 million in cost reductions.

Havertys cautious

Havertys reported consolidated sales down 1.3% to $181.6 million, with comparable store sales down 4.8%, while gross margin improved to 61.2%.

Fewer people on the floor

The BLS jobs report released May 2 showed total nonfarm payrolls rose by 177,000 in April, with unemployment steady at 4.2%. Furniture and home furnishings retailers were going the other way. They employed 406,500 people on a seasonally adjusted basis, down 2,000 from March and about 4,300 below April 2024.

Furniture manufacturing added 1,500 jobs in April to 338,400, but that was still about 7,500 fewer than a year earlier. Meanwhile private-sector average hourly earnings were up 3.8% over 12 months, so the staff stores did keep cost more to hold onto.

Steady at best

Share gains went to the largest players while specialty sellers shrank. With furniture store headcount shrinking and wages still rising, keeping experienced sales staff mattered more when every sale was harder to win.

Related on FIN

• Furniture Showrooms Run on Morale
• Furniture Sales Rose. Costs Are Rising Faster.

Sources

• Wayfair, First quarter 2025 results
• Sleep Number, First quarter 2025 results (SEC filing)
• Haverty Furniture Companies, First quarter 2025 results (SEC filing)
• U.S. Bureau of Labor Statistics, The Employment Situation, April 2025 (May 2, 2025)