Winners, Strugglers, and Exits. Furniture's New Line in the Sand.

Originally published November 20, 2025. This version was rebuilt from company filings and releases for the FIN archive, and the facts are as of that date unless an update line says otherwise.

The third week of November 2025 brought a stack of earnings reports, and they sorted the home business into three groups. Some companies were growing. Some were cutting to get healthy. A few were walking away from businesses they'd run for decades.

Update, November 2025. Two days after this issue, American Signature, the parent of Value City Furniture, filed for Chapter 11 in Delaware on November 22, 2025.

The short version

• La-Z-Boy bought a group of stores and said it would exit its Kincaid and American Drew lines.
• Williams-Sonoma and the HomeGoods side of TJX kept growing.
• Target's sales slipped, and its new leadership singled out home as a category to fix.
• Natuzzi's sales fell and it laid out a restructuring plan.

La-Z-Boy buys stores and sheds brands

La-Z-Boy's fiscal second-quarter release paired growth with pruning. On the growth side, it completed the purchase of 15 stores in the Southeast. On the pruning side, it announced plans to exit Kincaid and American Drew casegoods and Kincaid upholstery, and proposed closing its manufacturing plant in the U.K. Written sales in its retail segment grew, and wholesale delivered a small gain.

For retailers carrying Kincaid or American Drew, the release was a signal to plan replacement groups and sell through what's on the floor. For everyone else it showed where a big vertically integrated player saw its future, in its own stores and its core upholstery brand.

Williams-Sonoma and HomeGoods keep winning

Williams-Sonoma reported comparable brand revenue up 4.0%, raised its operating margin outlook and authorized a new stock buyback. TJX said comparable sales grew at HomeGoods along with its other divisions and raised its full-year guidance.

These are two very different customers. One pays full price for a designed, branded look. The other hunts for a deal. What they shared that fall was a clear reason to shop there, and a home shopper who was still spending when the reason was clear.

Target names home as a problem to fix

Target's comparable sales fell in the quarter, with store sales weaker than digital. On the earnings call, incoming CEO Michael Fiddelke said new leaders had joined the home business and that the Threshold brand would be reinvented. He also confirmed Target had cut about 1,800 headquarters roles.

When a mass merchant decides to get serious about home, the pressure lands on decor, textiles and small furniture first. Furniture stores competing at opening price points should expect a sharper Target in that space in 2026.

Natuzzi restructures

Natuzzi reported second-quarter net sales of €78.3 million, down from a year earlier, and a loss. Its board approved the outlines of a restructuring centered on its Italian manufacturing base and lower fixed costs, and the company noted asset sales including its building in High Point.

Where this left the industry in late November

The line in the sand was clarity. Companies with a sharp position and their own retail were growing. Companies stretched across too many brands or too much fixed cost were cutting. The Value City filing that followed two days later showed what happens when neither fix comes in time.

Related on FIN

• Every Door in Town
• Furniture Store Sales Fell 2.7%. Every Other Category Grew.

Sources

• La-Z-Boy Incorporated, Fiscal 2026 second quarter results release (Form 8-K exhibit)
• Williams-Sonoma, Inc., Third quarter 2025 results, Exhibit 99.1
• The TJX Companies, Q3 fiscal 2026 results release
• Target Corporation, Third quarter 2025 earnings release
• Target Corporation, Q3 2025 earnings call transcript, Nov. 19, 2025
• Natuzzi S.p.A., Second quarter 2025 results, Form 6-K
• U.S. Bankruptcy Court, District of Delaware, American Signature, Inc., case 1:25-bk-12105, docket