FIN DeskOriginally published March 19, 2025. This version was rebuilt from the Census Bureau's new residential construction report, Williams-Sonoma's results and Beyond's announcement for the FIN archive, and the facts are as of that date.
The housing data released in mid-March 2025 bounced, but the longer trend still pointed down. Two home retailers offered very different stories the same week.
The short version
- Census and HUD said February housing starts rose 11.2% to 1,501,000 at an annual rate.
- Williams-Sonoma reported fourth-quarter comparable brand revenue up 3.1%.
- Beyond agreed to sell its Zulily brand and receive $5 million.
A bounce in starts
Privately owned housing starts ran at an annual rate of 1,501,000 in February, 11.2% above January but 2.9% below February 2024. Completions were 1,592,000.
Building permits, the best guide to future construction, were 1,456,000, down 1.2% from January and 6.8% from a year earlier. That pointed to fewer new homes needing furniture in late 2025 and 2026.
Monthly starts swing widely. Census put the margin of error on the 11.2% monthly gain at 15.7 points, so the permit trend mattered more for furniture demand over the next year.
Williams-Sonoma grows
Williams-Sonoma reported fourth-quarter comparable brand revenue up 3.1% and a record fourth-quarter operating margin of 21.5%. Net revenues were $2,462 million, and the extra week in the quarter added about 510 basis points to revenue growth.
By brand, Pottery Barn comps fell 0.5% while West Elm rose 4.2%, the first positive quarter for West Elm after steep declines. For fiscal 2025 the company guided comps between flat and up 3%.
Zulily changes hands
Beyond, owner of Bed Bath & Beyond and Overstock, agreed to sell its Zulily brand to Lyons Trading Company, operator of Proozy.com. Beyond would receive $5 million and keep a 25% stake.
Online home goods brands kept changing hands at low prices in 2025, as owners focused on fewer, stronger names.
What it means for furniture
A one-month bounce in starts did not change the slower permit trend. Retailers with strong brands and margins, like Williams-Sonoma, were gaining while weaker online names were being sold off.
Related on FIN
Sources
- U.S. Census Bureau and HUD, New residential construction, February 2025
- Williams-Sonoma, Fourth quarter and fiscal year 2024 results (SEC exhibit 99.1)
- Beyond, Inc., Sale of majority stake in Zulily brand (Mar. 18, 2025)
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