Shop Talk

Retailers, consumers and prices

Fancy furnishings can wait


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.