Consumer Confidence Jumps as Furniture Retailers Report a Tough Quarter

Originally published November 1, 2024. This version was rebuilt from The Conference Board and the Ethan Allen and Havertys third-quarter releases for the FIN archive, and the facts are as of that date.

At the start of November 2024, consumers sounded a lot more upbeat than the furniture results coming out of the third quarter. The question for retailers was whether better moods would turn into more traffic before year end.

The short version

• The Conference Board's Consumer Confidence Index rose to 108.7 in October from 99.2.
• Ethan Allen reported net sales of $154.3 million, down from $163.9 million.
• Havertys said comparable-store sales decreased 20.5% in the third quarter.

Rising consumer confidence

The Conference Board said its index increased in October to 108.7, up from 99.2 in September. The Present Situation Index rose 14.2 points to 138.0 and the Expectations Index rose 6.3 points to 89.1.

Its chief economist called it the strongest monthly gain since March 2021, while noting the index still had not broken out of the narrow range of the past two years. All five components improved.

Ethan Allen holds margins

Ethan Allen reported fiscal first-quarter net sales of $154.3 million, down from $163.9 million a year earlier. Gross margin held at 60.8% compared with 61.1%, and retail segment written orders were lower by 6.8%.

The company generated $15.1 million of operating cash flow and ended September with $186.4 million in cash and investments. Strong margins gave it room to keep investing while demand stayed soft.

Havertys feels the housing slowdown

Havertys said consolidated sales decreased 20.2% to $175.9 million and comparable-store sales fell 20.5%. Diluted earnings per share were $0.29, down from $1.02, and gross margin was 60.2% versus 60.8%.

Its chief executive said the company began to see improvement in traffic during the quarter, and average ticket rose slightly. Havertys planned three more openings in the fourth quarter to end 2024 with 129 locations.

Looking ahead

Confidence was moving in the right direction, but furniture retailers were still reporting double-digit declines in some cases. Better traffic in the fall offered the first sign that the gap might start to close.

Related on FIN

• Furniture Shoppers Are Holding Back
• Furniture Showrooms Run on Morale

Sources

• The Conference Board, US consumer confidence bounced back in October (Oct. 29, 2024)
• Ethan Allen Interiors, Fiscal 2025 first quarter results (Oct. 30, 2024)
• Haverty Furniture Companies, Third quarter 2024 results (SEC exhibit 99)