HIGH POINT, N.C. — New residential furniture orders dropped 5% in February compared to the same period in 2024, according to the April issue of Furniture Insights. 

However, February new orders were up 2% compared to January, which in turn were up 2% over December figures, according to Mark Laferriere, assurance partner at Smith Leonard, the accounting and consulting firm that produces the monthly report. New orders though are down 4% for the year-to-date, compared to last year.

February shipments were down 5% compared to 2024 figures, and down 8% compared to January, although Laferriere noted it could be a function of February being a shorter month. Shipments are flat for the year-to-date compared to 2024 figures.

Backlogs were down 6% compared to February 2024, but up 2% from January "as new orders outpaced current shipments during the month."

Receivable levels were up 1% from January, and down 1% from February 2024, "which may be an indication of a slight worsening in collective agings (given lower shipment rates) but could still just be normal timing differences with collections," Laferriere noted. 

Inventories were down 1% from January 2025 and down 2% from February 2024. "Inventories and employee/payroll levels are again materially in line with recent months, but down from 2024, indicating that companies have aligned levels to match current operations," he added.

On a seasonally adjusted basis, sales at furniture and home furnishings stores in March were down 0.1% compared to February, but up 7.7% from March 2024. Year to date on a non-adjusted basis, sales were up 4.9%, according to the April Furniture Insights.

Sharing his thoughts following the April High Point Market, Laferriere said, "Expectations were understandably tempered coming in, but most people we spoke with were pleasantly surprised. Tariffs were obviously a huge topic of conversation, but some said it still felt like a 'normal' market, with others saying it was one of their best in recent years due in part to exciting new introductions and/or new opportunities with retailers exploring their domestic versus import options. While traffic was reported to be down (particularly international), those who were there seemed ready to do business."

He added, "Most we spoke with said they understood the need for action on the global economic front, but took issue with the rollout and disruption and uncertainty that it caused, particularly right before Market. What’s clear is that with limited exceptions, everyone within the industry will be impacted by tariffs in some form or fashion, even those generally considered to be 'domestic' manufacturers due to international sourcing of components such as fabric. For now, clearly the less exposure to China goods, the better, for those with foreign supply chains.

"Meanwhile, consumer confidence declined for a fifth consecutive month, though there do seem to be some positive signs with housing and the stock market volatility seems to have calmed down for the moment (as of this writing)."

Laferriere noted although the two-month lag in the monthly stats reflected pre-tariff activity, "we have seen industry reports and heard from people at Market that there may be some demand being pulled forward in March and April 2025 in response to the tariffs (similar to auto and appliance reports), so it will be interesting to see how that plays out over the next few months as the tariff story plays out."