Holiday Sales Slowdown, RH Surges, Hooker Struggles

Originally published September 12, 2025. This version was rebuilt from company filings and Deloitte's forecast release for the FIN archive, and the facts are as of that date.

Mid-September is when retailers start betting on the holidays, and the first forecast of the 2025 season was cautious. The same week, three furniture companies reported quarters that showed how differently the market was treating each price tier.

The short version

• Deloitte expected holiday sales to grow modestly, with online sales growing faster.
• RH grew revenue and demand despite tariffs and a weak housing market.
• Hooker lost money as its Home Meridian business shrank sharply.
• Lovesac posted a small sales gain.

A modest holiday forecast

Deloitte forecast holiday retail sales up 2.9% to 3.4% from November through January, with e-commerce growing much faster. For a furniture store, a season like that rewards being found online before the customer ever comes in.

RH grows at the top

RH reported second-quarter revenue up 8.4% and demand up 13.7%, and the company noted it did so despite tariff uncertainty and what it called the worst housing market in almost 50 years. The affluent customer RH chases was still spending.

Hooker feels the import squeeze

Hooker Furnishings reported a net loss of $3.3 million for its second quarter. Sales at its Home Meridian segment fell 44.5%, and the company pointed to a customer bankruptcy and tariffs, with Vietnam, its main source country, facing a new 20% rate. Hooker said it was carrying out a cost reduction plan.

The contrast with RH is the point of the week. A brand that sells straight to wealthy consumers could pass along costs. An importer that depends on a few large retail customers had much less room to absorb the hit.

Lovesac holds steady

Lovesac reported second-quarter sales up 2.5% to $160.5 million, with most of its sales coming through its showrooms. It kept building out its modular product line, including the Snugg sofa.

Where this left the industry in mid-September

The holidays looked like a careful season, and the companies with direct relationships with their customers were holding up best. Middle-market importers were the most exposed to tariffs and to the failure of their big customers.

Related on FIN

• Follow the Tariff Dollars
• Furniture Shoppers Are Holding Back

Sources

• Deloitte, 2025 holiday retail forecast release, Sept. 10, 2025
• RH, Second quarter 2025 shareholder letter, Exhibit 99.2
• Hooker Furnishings, Fiscal 2026 second quarter results, Exhibit 99.1
• The Lovesac Company, Second quarter fiscal 2026 results, Exhibit 99.1