Published on 3 May 2024 on Zacks via Yahoo Finance

3 Stocks to Watch From the Challenging Furniture Industry

As consumer confidence dwindles and economic uncertainty persists, individuals are likely to tighten their purse strings, leading to decreased spending on non-essential items like furniture and home furnishings. Also, consumers’ cautious approach for future business conditions is a concern for the Zacks Furniture industry. Apart from high interest rates adding to the financial burden, businesses in the industry have also been experiencing high expenses related to labor. Also, continued investments in e-commerce and intense competition are added headwinds.Nonetheless, increasing investments in technological advancements and solutions, product innovation, efficient cost management along with accretive buyouts should favor the furniture industry in expanding its global reach for industry players like American Woodmark Corporation AMWD, Sleep Number Corporation SNBR and Flexsteel Industries, Inc. FLXS.

Industry Description

The Zacks Furniture industry comprises manufacturers, designers and marketers of residential as well as commercial furnishing solutions. Some of the companies provide kitchen and bath cabinets as well as various engineered components and products in the United States, along with international markets. A few industry players also offer specialty rental services, such as modular and portable storage solutions as well as modular space and portable storage solutions. They are involved in designing and producing a wide variety of engineered components and products for homes, offices and automobiles. The industry players cater to different sectors, namely, construction, energy, healthcare, security, government, retail, commercial, education and transportation.