Shop Talk

Retailers, consumers and prices

Fancy furnishings can wait

March 28, 2008

ethan.jpgConsumers with a taste for luxury are not only scaling down their purchases at Saks Fifth Avenue and Nordstrom, but are also cutting back on furnishings and decor.

Morgan Keegan cut profit estimates for Ethan Allen Interiors  this week, saying it could be the next victim as a spending pullback takes hold at upscale furnishings companies.

“Home related spending is weak and we are now seeing signs that the typically resilient high-end consumer is pulling back on discretionary spending on furnishings,” analyst Laura Champine said in a research note.

Already, bedding maker Tempur-Pedic has warned that U.S. sales are weak, while Williams-Sonoma noted noted one of the most challenging macro-economic environments in 30 years, Champine added.

Ethan Allen has generally fared better than its furniture peers but rising costs for raw materials, energy and freight are weighing on the sector, Champine said. She cut her third quarter profit estimate for the company by three cents a share to 49 cents, and lowered her full-year estimate by six cents. The company’s fiscal year ends in June.

(Photo: Ethan Allen Website)

Comments

This short article has a lot of meaning for myself, as my sister is in this type of business – she had some cuts in her company lately, and it doesn’t look nearly as good as a year ago, right now.

 

I love having a nice house, with great furniture, but I really don’t think that your bed should cost a ton. I got a great bed at sleepys for really cheap.

 

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