Tariff Threats, Consumer Confidence, Housing Rebound, and Sleep Number's Power Struggle

Originally published November 27, 2024. This version was rebuilt from The Conference Board, NAR and Census housing reports, the president-elect's statements and Sleep Number filings for the FIN archive, and the facts are as of that date.

The day before Thanksgiving 2024, furniture companies had a lot to digest. Consumers felt better, existing-home sales finally beat last year, tariffs were back on the table and a major bedding brand faced a shareholder fight.

The short version

• The Conference Board's Consumer Confidence Index rose to 111.7 in November.
• NAR said existing-home sales climbed 3.4% to 3.96 million in October.
• The president-elect threatened 25% tariffs on Canada and Mexico and an additional 10% on China.

Consumer confidence on the rise

The Conference Board said its index increased in November to 111.7, up 2.1 points from 109.6 in October. The Present Situation Index rose 4.8 points to 140.9, and the Expectations Index ticked up 0.4 points to 92.3.

Two months of gains suggested shoppers were heading into the holidays in better spirits.

Housing rebound

NAR said existing-home sales climbed 3.4% in October to an annual rate of 3.96 million and were 2.9% higher than a year earlier, the first annual gain since July 2021. The median price rose 4.0% to $407,200 and inventory was 1.37 million homes, or 4.2 months of supply.

New construction was weaker. Census said new home sales fell 17.3% to 610,000 in October, after a strong September, so the rebound was mainly in existing homes.

Potential trade policy shifts

On November 25 the president-elect said he would impose a 25% tariff on all products from Mexico and Canada on his first day in office, and separately an additional 10% tariff on goods from China.

Tariffs on all three countries would hit both finished furniture and components. Importers had less than two months to decide whether to bring orders forward.

Update. Duties on China took effect in February 2025, and the Supreme Court ruled on February 20, 2026 that IEEPA does not authorize these tariffs.

Corporate developments at Sleep Number

Stadium Capital, which said it owned approximately 11.7% of Sleep Number's shares, published an open letter calling for board changes and a different approach to finding a new chief executive.

Sleep Number responded that its CEO search was being led by an independent committee advised by Korn Ferry, and that it had added two Stadium-recommended directors the previous year.

Looking ahead

Better confidence and existing-home sales gave furniture sellers reasons for optimism. Tariff threats and leadership fights were reminders that 2025 would bring its own disruptions.

Related on FIN

• Follow the Tariff Dollars
• Move-In Furniture Tickets Are Drying Up

Sources

• The Conference Board, US consumer confidence improved again in November (Nov. 26, 2024)
• National Association of Realtors, Existing-home sales grew 3.4% in October (Nov. 21, 2024)
• U.S. Census Bureau and HUD, New residential sales, October 2024
• The American Presidency Project, Statement threatening 25% tariffs on Canada and Mexico (Nov. 25, 2024)
• The American Presidency Project, Statement threatening 10% tariffs on China (Nov. 25, 2024)
• The White House, Executive Order 14195 (Feb. 1, 2025)
• Supreme Court of the United States, Learning Resources, Inc. v. Trump (Feb. 20, 2026)
• Stadium Capital Management, Open letter to Sleep Number shareholders (SEC exhibit, Nov. 25, 2024)
• Sleep Number Corporation, Response to Stadium Capital letter (SEC exhibit 99.1, Nov. 25, 2024)