HIGH POINT, N.C. — New residential furniture orders dropped 9% in April compared to the same period in 2024, according to the June issue of Furniture Insights. 

April new furniture orders were also down 7% compared to March, according to Mark Laferriere, assurance partner at Smith Leonard, the accounting and consulting firm that produces the monthly report. New residential furniture orders are also down 4% for the year-to-date, compared to last year.

April shipments were down 2% compared to 2024 figures, and down 4% compared to March. Shipments are flat for the year-to-date compared to 2024 figures. Shipments in April 2025 were up for approximately half of the participants compared to April 2024, Laferriere said.

Backlogs were down 10% compared to April 2024, and down 2% from March, "which are materially in line with new order and shipments trends." he added. 

Receivable levels were down 4% from March, and down 1% from April 2024, which are also in line with the new order and shipment trends. Inventories were flat compared to March 2025 and up 3% from April 2024, "which are materially in line with prior periods and current operational levels," he continued.

On a seasonally adjusted basis, sales at furniture and home furnishings stores in May were up 1.2% compared to April, and up 8.8% from May 2024. Year to date on a non-adjusted basis, sales were up 6.8%, according to the June Furniture Insights.

"This month saw Consumer Confidence wane, reversing last month’s gains as the economy continues to deal with a high-level of general uncertainty," Laferriere said. "Specifically, the related Expectations Index continues to signal a possible recession ahead. And while not necessarily pervasive throughout the entire industry, some segments are likely in a mini-recession already, given how the furniture industry is typically one of the first to feel the impact of such economic effects."

While the full impact of tariffs is yet to be determined, Laferriere cited media reports which said more than 70% of small to medium home furnishings companies had already seen sales decline due to tariffs. "This seems consistent with the 4% year-to-date average decline in new orders we’re seeing for participants in our survey, as well as the average 2% decline in revenues for a representative group of publicly traded furniture retailers and manufacturers/distributors based upon their last quarterly filings through April. That being said, there are certainly companies taking advantage of opportunities presented by the shifting landscape to add market share, and we continue to see announcements of new retail openings in the face of the many retail closings."

He added, "With the newly announced 20% Vietnam tariff potentially providing a surprise to anyone expecting 10% or less and the normally leaner summer months ahead, it could be a bumpy ride for a little while as these issues fully settle themselves out and business returns to 'normal,' hopefully sooner than later. However, as we’ve said before, the industry has managed through similar issues in the past and will ultimately persevere again."