Home retailers had a surprisingly good quarter. Will it last?

2025.08.13

A hypothetical: When are tariffs a good thing for the home retail business? One could argue that there’s a momentary upside when they create panic buying, with consumers rushing out to make purchases before the full effect of tariff-induced price increases hits.

That’s one possible explanation for the unexpectedly positive latest financial results from big publicly traded furniture and furnishings retailers—a continuation of the modest improvements seen in the previous quarter. Companies like Wayfair, Ethan Allan, Havertys, and Floor & Decor all reported better numbers for the late spring/early summer, and as good as it was to see some black ink, it comes with the uncertainty of whether this in fact the start of the long-awaited rebound for the home furnishings industry, or whether more tumult lies on the horizon.

Whatever is driving the recent surge is welcome news for an industry still nursing a post-pandemic hangover and reeling from the confusion of Trump’s on-again, off-again tariffs. Even domestic manufacturers are struggling to source components that come from overseas—be they fabrics, frames, or any of the doodads and widgets that hold everything together.

So, executives, investors, and anyone else in the furniture and home furnishings food chain was, if not jumping for joy quite yet, at least no longer in despair.

Here’s how things shaped up at some of the big public players:

WAYFAIR’S BREAKTHROUGH QUARTER

The company’s performance was the biggest surprise this earnings cycle, as analysts had forecast more of the same for both its bottom and top lines since the big online seller has been in the doldrums for the past few years. Instead, Wayfair posted its first quarterly profit in more than four years, reaching $15 million in net income versus a loss of $42 million a year ago. Q2 net revenue was up 5 percent to $3.3 billion—even more when you carve out the company’s discontinued German operation. CEO Niraj Shah, who is usually upbeat even when the news is dismal, called the quarter a “resounding success.” He attributed the good news not to buying being pulled forward in anticipation of tariff-impacted prices, but more to strategic initiatives like its first physical store, technological improvements to its marketplace, and increases in lower-ticket items like housewares. If the brand can continue what its leaders are calling “momentum,” it could become the home furnishings retail success story of the year.

ARHAUS HITS A RECORD

The upscale chain said it “achieved the highest quarterly net revenue in Arhaus’ history,” with $358 million, a 15.7 percent jump compared to last year. This included comp growth of 10.5 percent. A lot of that dropped to the bottom line with the company reporting net income of $35 million, up 57.7 percent versus last year. Arhaus also continued its generally positive outlook for the year, with net revenues projected to be up by 1.5 percent to 8.6 percent and net income and EBITDA rising accordingly. As an indicator of the affordable luxury sector, the Q2 Arhaus results were quite encouraging.

HAVERTYS GAIN IS FIRST SINCE Q4 2022

After a losing streak that stretched back nearly three years, the Southeastern regional furniture chain saw sales bump up 1.3 percent to $181 million in its second quarter, even if it was driven by new stores. Written business and gross margins both ticked up a few notches, and though earnings declined from 27 cents a share to 16 cents, the company said it was “encouraged by the positive sales and operational trends we are seeing across our business.”

ETHAN ALLEN CONTINUES ITS DOMESTIC ADVANTAGE

It was a mixed quarter for the higher-end chain. For its Q4, Ethan Allen saw its retail written orders up 1.6 percent, though consolidated net sales were down—from $169 million to $160 million—and earnings declined slightly. The company increased its dividend to shareholders and said its fiscal year 2025 performance “reflects the strength of our vertically integrated enterprise.” It also cited the $24.8 million it generated in fourth-quarter operating cash flow as a big positive considering the turbulent environment for sourcing home furnishings product.

FLOOR & DECOR UP ON TOP AND BOTTOM LINES

The floorcovering chain said its net sales jumped 7.1 percent for the second quarter, from $1.1 billion to $1.2 billion, with comp store results ticking up 0.4 percent year over year. Operating income was up an impressive 14.8 percent to $81.9 million from $71.3 million a year ago. It continued positive forecasts for the balance of its fiscal year and will stick with its plans to add 20 new locations this year.

The two big names missing here are RH and Williams-Sonoma. Both companies will be putting out their next quarterly results over the coming weeks, providing more insight into how consumers are shopping for furniture and home furnishings in the tariff era. Given the recent swath of missed analyst forecasts, it’s anybody’s guess what those results will be.

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Warren Shoulberg is the former editor in chief for several leading B2B publications. He has been a guest lecturer at the Columbia University Graduate School of Business; received honors from the International Furnishings and Design Association and the Fashion Institute of Technology; and been cited by The Wall Street Journal, The New York Times, The Washington Post, CNN and other media as a leading industry expert. His Retail Watch columns offer deep industry insights on major markets and product categories.