Strong Earnings, Challenging Markets. The Furniture Industry in July 2025

Originally published July 25, 2025. This version was rebuilt from HNI's SEC filing, NAR's June report and the White House for the FIN archive, and the facts are as of that date.

Late July 2025 showed that a well-run furniture company could still grow in a rough market. The housing data behind it was much less encouraging.

The short version

• HNI reported second-quarter net sales of $667.1 million and net income of $48.2 million.
• NAR said June existing-home sales fell 2.7% while the median price hit a record.
• New country tariff rates were set to take effect in early August.

HNI shows what's possible

HNI Corporation reported second-quarter net sales of $667.1 million and net income of $48.2 million. Its workplace furnishings business grew, and its residential building products segment, which sells fireplaces and hearth products, grew sales more than five percent with a wider margin.

Strong execution and pricing let HNI grow in a slow housing market.

Housing stays stuck

NAR's June report showed existing-home sales down 2.7% from May and flat from a year earlier, while the median price reached a record $435,300. Inventory was up from a year earlier, but high prices and mortgage rates were keeping many buyers out.

Tariffs on the way

A week later, a July 31 executive order set new reciprocal tariff rates by country, effective August 7. Importers spent late July pulling shipments forward and repricing.

Update. The Supreme Court ruled on February 20, 2026 that IEEPA does not authorize these tariffs.

Execution matters

Housing and tariffs were working against the whole industry. Companies with pricing power and tight operations were proving they could still post growth.

Related on FIN

• Move-In Furniture Tickets Are Drying Up
• Mortgage Rates Jumped to 7.28%. Housing Still Drags Tickets.

Sources

• HNI Corporation, Second quarter 2025 results (SEC filing)
• National Association of Realtors, Existing-home sales overview, June 2025
• The White House, Further modifying the reciprocal tariff rates (July 31, 2025)
• Supreme Court of the United States, Learning Resources, Inc. v. Trump, opinion (Feb. 20, 2026)