Furniture Sales Got Revised Down. Consumers Got Gloomier.

The government went back and redid its math on furniture store sales, and the picture got worse. July came in around $10.5 billion, a little below June and about 3% below last July. For the year, we're running a couple points behind 2025. If you've been planning off the earlier number that had us closer to $11.4 billion, throw it out.

In today's briefing:

• Sales revised lower, and the old number no longer counts
• Consumer sentiment dipped again, but some people are still buying big-ticket items
• Ethan Allen's shareholder vote is still set for November 4
• A new patent case targets powered recliner mechanisms
• Tariff refund timeline hasn't changed

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RETAIL SALES

Summer was softer than we were told.

Every year Census goes back and corrects its retail numbers. This year's correction moved furniture stores down. July sales were slightly weaker than June and clearly behind last year. This isn't a one-month dip. It's been soft all year.

What to do with it: If your fall plan was built on the old number, rebuild it. Buy and price for what's actually selling on your floor today. Don't bet on a rebound this data doesn't show. For the next few months, the wins are in closing more of the customers who walk in and keeping inventory moving.

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CONSUMER SENTIMENT

People feel worse, but some are buying before prices go up.

The University of Michigan's consumer sentiment reading finished September at 48.1, the lowest in four months. People expect inflation to pick up next year, and they're worried about gas prices and trade. The one bright spot: more households said now is a good time to buy big items, because they think prices will be higher later.

What to do with it: Nervous shoppers still shop. They just need a reason to trust the deal. Lead with value and what you have in stock. Make financing and delivery dates crystal clear, because uncertainty kills a close. And if you hear "I want to buy before it goes up," make sure your promo margins still hold if your costs rise.

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GOVERNANCE

Ethan Allen's board fight is still headed for a November 4 vote.

The activist investor pushing for change at Ethan Allen filed an update to its proxy on Monday, mostly housekeeping. Nothing moved. The shareholder meeting is still November 4, online only. The company still plans to name a new CEO by mid-2027.

What to do with it: The proxy fight makes headlines, but the real question for the rest of us is what changes on the ground. If you buy from Ethan Allen or compete with them, watch for shifts in lead times, design programs, and how they treat dealers as new leadership comes in.

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TRADE / SOURCING

A new patent case could hit motion furniture.

Leggett & Platt and Ultra-Mek filed a patent complaint with the U.S. International Trade Commission over powered rocker and glider recliner mechanisms. The case names manufacturers in China, Vietnam, and several other countries. They're asking the ITC to block imports of the mechanisms, and of any finished seating that uses them. This is separate from the tariff refund issue.

What to do with it: If you sell a lot of power motion, call your vendors now. Ask three things. Do any of your mechanisms fall under this case? Does any finished seating you import use them? If imports get blocked, where else can you source? Better to know before the case picks up speed.

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QUICK HIT

Tariff refunds: no change. The surety companies told the trade court they're still waiting on hundreds of unpaid refund claims, and customs hasn't given them a timeline. The next refund phase is still scheduled for October 6, with settlement October 7.

Bottom line: The summer was softer than the first numbers said, and consumers are nervous. Plan off what's really happening, sell value and certainty, and stop waiting for a bounce. Keep an eye on Ethan Allen's vote in November, check your recliner suppliers against the new patent case, and don't count on tariff refund money until it actually shows up.