This Business Doesn't Sit Still!

Originally published April 11, 2025. This version was rebuilt from the University of Michigan survey, Executive Order 14223, Executive Order 14266 and Lovesac's results for the FIN archive, and the facts are as of that date.

The week of April 11, 2025 moved fast even by this year's standards. Consumers turned sharply more worried, a pending trade investigation reached into furniture, and one of the industry's growth stories reported a softer quarter.

The short version

• The University of Michigan's preliminary sentiment index fell to 50.8 in April.
• Executive Order 14223's lumber investigation names furniture as a derivative product.
• Lovesac reported fourth-quarter net sales of $241.5 million, down 3.6%.

Sentiment drops

The University of Michigan's preliminary April sentiment index fell to 50.8 from 57.0 in March. Year-ahead inflation expectations jumped to 6.7%, the highest reading since 1981.

The survey closed on April 8, before the 90-day pause on most country tariffs was announced on April 9. Even so, shoppers expecting higher prices tend to delay big purchases like sofas and dining sets unless they believe prices will rise even more later.

Lumber in the crosshairs

A March 1 order told the Commerce Department to open a Section 232 investigation into imports of timber and lumber and their derivative products, naming paper, furniture and cabinetry. The report was due within 270 days.

For furniture makers the case cut both ways. Domestic producers could gain protection from imports, but tariffs on wood inputs would raise costs for U.S. plants as well.

Update. The investigation led to a September 29, 2025 proclamation placing tariffs on upholstered wooden furniture and kitchen cabinets and vanities from October 14.

Lovesac slows

Lovesac reported fourth-quarter net sales of $241.5 million, down 3.6%, and fiscal-year sales of $680.6 million, down 2.8%. Gross margin improved to 60.4% in the quarter, and the company highlighted the launch of its new EverCouch platform and changes to its supply chain.

Stay nimble

Sentiment, trade policy and company results were all moving in the same week. Furniture businesses that could reprice, resource and remarket quickly had the advantage.

Related on FIN

• Furniture Shoppers Are Holding Back
• Follow the Tariff Dollars

Sources

• University of Michigan, Surveys of Consumers, preliminary April 2025
• The White House, Executive Order 14266 (Apr. 9, 2025)
• The White House, Executive Order 14223 on timber and lumber imports (Mar. 1, 2025)
• The White House, Section 232 proclamation on timber, lumber and derivative products (Sept. 29, 2025)
• The Lovesac Company, Fourth quarter and fiscal 2025 results (SEC filing)